Alphabet Inc. (GOOGL) has reported a significant increase in Google Cloud revenues, which rose by 35.8% year-over-year to $58.71 billion for the fiscal year 2025. This segment is projected to account for 14.6% of Alphabet’s total revenues by 2025. The cloud backlog surged 55% sequentially, reaching $240 billion, primarily driven by strong demand for enterprise AI infrastructure and products.
As of the end of Q4 2025, Alphabet’s Google Cloud clientele had doubled since Q1 2025, with deals exceeding $1 billion surpassing the total from the previous three years combined. The competitive landscape remains intense, with Amazon holding a 28% and Microsoft 21% share in the global cloud market as of Q4 2025, compared to Google Cloud’s 14% share.
Alphabet plans to invest between $175 billion and $185 billion in capital expenditures for 2026, while Amazon has committed $200 billion for its AWS infrastructure. The Zacks Consensus Estimate for Alphabet’s 2026 earnings per share is projected at $11.58, reflecting a 7.1% growth from fiscal 2025.
