Alphabet’s stock surged 107% over the past year, adding more than $2 trillion in market value as core Search revenues rose 19%. Google Cloud revenue jumped 63% to $20 billion and its contracted backlog nearly doubled to $462 billion, while planned capex of $190 billion in 2026 signals near-term compute constraints.
Alphabet’s share price more than doubled over the last year, rising 107% and adding over $2 trillion in market capitalization. This surge was propelled by a 19% increase in core Search advertising revenues, underscoring strong demand across its flagship business.
Google Cloud revenue accelerated 63% year-over-year to exceed $20 billion in a single quarter, while the backlog of contracted future revenue nearly doubled to $462 billion. Management attributed this jump to strong enterprise AI demand, positioning cloud solutions as the primary growth driver.
Alphabet plans to spend $190 billion on capital expenditures in 2026 and anticipates higher spending in 2027, but management warns of near-term compute constraints. These capacity limits suggest that cloud revenue could have been even higher if server and data-center supply met customer demand.
