Key facts
- Google Cloud revenue surged 82% to $24.8 billion, driven by enterprise AI demand.
- The division's backlog of unfulfilled orders reached $514 billion.
- Alphabet's total revenue grew 24% year-over-year to $119.8 billion.
- Alphabet raised its annual capital expenditure forecast to $180-$190 billion.
- Gemini AI chatbot has 950 million monthly active users.
Alphabet's Google Cloud division reported a significant surge in revenue, growing 82% year-over-year to $24.8 billion, surpassing analyst expectations. This acceleration from the previous quarter's 63% growth is primarily driven by robust enterprise demand for AI solutions and infrastructure. The company also noted a substantial backlog of unfulfilled cloud contracts, valued at $514 billion, indicating continued strong future demand.
Overall, Alphabet's total revenue climbed 24% to $119.8 billion, with Google Services revenue up 15% to $94.5 billion. CEO Sundar Pichai emphasized that the company's AI investments are driving innovation across its business. Google's AI chatbot, Gemini, now boasts 950 million monthly active users. Despite these positive results, Alphabet's significant capital expenditures, estimated between $180 billion and $190 billion for the year on AI infrastructure, remain a focus for analysts. Concerns persist regarding AI development, including a delayed launch of Gemini 3.5 Pro, and competition from rivals like Microsoft and Amazon, who are also set to report earnings.