Cloud Revenue Growth Highlights
In the second quarter of 2026, Google Cloud’s revenue soared 82% year-over-year to $24.8 billion, marking an acceleration from the previous quarter’s 63% growth. This increase puts Google’s cloud revenue on a trajectory to reach nearly $99 billion annually. Meanwhile, Microsoft reported a 43% increase in Azure and other cloud services, while Amazon Web Services (AWS) grew 37% to $42.2 billion.
As of June 30, Google Cloud’s backlog reached $514 billion—almost doubling from the prior quarter—indicating strong future demand. Despite being the smallest of the three major providers, Google Cloud added approximately $11.1 billion in year-over-year revenue, comparable to AWS’s $11.4 billion gain.
Operating income for Google Cloud also climbed significantly, more than tripling to $8.8 billion, resulting in an improved operating margin of about 36%. Alphabet’s capital expenditures hit $44.9 billion, reflecting ongoing investments to meet rising demand.
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