Google Cloud revenue jumped 63% to over $20 billion in the latest quarter while its order backlog nearly doubled to $462 billion, surpassing last year’s total revenue. Alphabet plans $180–190 billion in capital expenditures for 2026 with further increases in 2027 to relieve compute constraints and meet AI demand.
Google Cloud revenue accelerated 63% year-over-year to over $20 billion in the latest quarter, marking the first time quarterly revenue has surpassed that level and underscoring strong enterprise demand for AI solutions.
The company’s cloud order backlog nearly doubled in a single quarter, reaching $462 billion—exceeding Alphabet’s full-year revenue—and reflecting substantial multi-year commitments from business customers for AI infrastructure.
Management acknowledged that compute capacity is currently limiting cloud revenue growth, stating that results would have been higher had the company been able to fully meet soaring customer demand.
To address the shortfall, Alphabet forecasts $180–190 billion in capital expenditures for 2026 and expects 2027 spending to rise significantly, focused on expanding data centers and server capacity to fulfill its massive backlog.
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