Google Cloud Reports Strong Growth
Alphabet (NASDAQ: GOOGL) reported that its Google Cloud revenue surged 63% year-over-year to $20 billion in the first quarter of 2026. This growth far outpaced Microsoft Azure’s 40% and Amazon Web Services’ (AWS) 28% during the same period. Notably, Google Cloud’s operating income rose to $6.6 billion, significantly up from $2.2 billion a year earlier, with an operating margin of 32.9% compared to 17.8% previously.
In addition to revenue growth, Google Cloud’s backlog nearly doubled in three months, reaching over $460 billion, a number expected to contribute substantially to future revenue. Alphabet raised its full-year 2026 capital expenditure guidance to $180 billion-$190 billion, reflecting investment in infrastructure amidst a competitive landscape where both Microsoft and Amazon are also ramping up spending.
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