Google Cloud grows 82% last quarter, putting Amazon and Microsoft investors on notice

Google Cloud just posted the kind of quarter that makes competitors’ investor relations teams reach for the antacids. Alphabet’s cloud division grew revenue 82% year-over-year in Q2 2026, hitting $24.8 billion and accelerating from an already impressive 63% growth rate in Q1. To put that in perspective: Google Cloud was responsible for nearly half of Alphabet’s entire revenue increase and roughly two-thirds of its added operating profit. The numbers that matter Google Cloud’s operating income reached $8.8 billion in the quarter, more than tripling from $2.8 billion a year earlier. That translates to a 35.6% profit margin. Meanwhile, the two incumbents posted respectable but comparatively modest results. Amazon Web Services grew 37% to $42.2 billion, which AWS called its fastest growth in 18 quarters. Microsoft Azure came in at 43% growth. Perhaps the most telling number isn’t revenue at all. Google Cloud’s backlog of committed but unrecognized revenue, essentially contracts signed but not yet fulfilled, now stands at $514 billion. Why the acceleration is happening now Alphabet is betting big on this momentum. The company raised its full-year capital expenditure guidance to $195-205...