Alphabet Cloud Revenue Soars 63% to $20B as Backlog Hits $462B
GOOG•Alphabet’s stock surged 107% over the past year as core Search revenue grew 19% and Google Cloud revenue jumped 63% to $20 billion in one quarter. Its contracted cloud backlog nearly doubled to $462 billion, but compute constraints and planned $190 billion capex in 2026 may limit further growth.
1. Rapid Stock and Revenue Growth
Alphabet’s stock more than doubled over the past year, rising 107% as core Search revenue increased 19%. The driving force behind this surge was Google Cloud, which reported a 63% revenue jump to $20 billion in a single quarter, marking its strongest growth rate to date.
2. Cloud Backlog and Compute Constraints
The contracted cloud backlog nearly doubled in three months to $462 billion, reflecting explosive enterprise demand for AI solutions. Management acknowledged that compute capacity limits prevented fulfillment of additional orders, indicating potential upside if infrastructure bottlenecks are resolved.
3. Capital Expenditures and Future Capacity
Alphabet plans to spend up to $190 billion on capital expenditures in 2026 with even higher outlays forecast for 2027. Despite this historic investment, the company says current data center and server build rates cannot keep pace with customer demand, posing a near-term growth cap.
