Alphabet’s cloud backlog hits $514B after 82% revenue growth

Google Cloud just posted an 82% year-over-year revenue jump in Q2 2026, pulling in $24.8 billion and pushing its contracted backlog to a staggering $514 billion. To put that number in perspective, $514 billion in future committed revenue is larger than the GDP of Belgium. The quarter marked a turning point for Alphabet’s cloud division, which accounted for nearly half of the parent company’s total revenue growth and roughly two-thirds of its incremental operating profit. The numbers behind the surge Alphabet’s overall Q2 revenue hit $119.8 billion, a 24% increase year-over-year. Google Cloud’s operating income tripled to $8.8 billion, translating to an operating margin of approximately 35.6%. The $514 billion backlog, formally known as remaining performance obligations, grew by more than $50 billion sequentially. CEO Sundar Pichai attributed the surge largely to multi-year commitments tied to AI workloads. Over 50% of that backlog is expected to convert into recognized revenue within the next 24 months. AI adoption is the engine Pichai highlighted that nearly 90% of Fortune 100 companies now use Gemini Enterprise, Alphabet’s flagship AI offering for businesses. Alphabet raised its ...