Google Cloud revenue rose 63% year-on-year to $20.03 billion in 1Q26, boosting the hyperscalers’ combined revenue to $84.8 billion, a 39% gain and 15-point growth acceleration. Google’s committed backlog jumped $222 billion to $462 billion on TPU chip agreements scheduled for late-2026 revenue recognition, and Google Cloud margin expanded to 33% from 18%.
Google Cloud achieved $20.03 billion in revenue during 1Q26, reflecting a 63% year-over-year increase that outpaced AWS and Azure growth. This surge contributed to hyperscaler combined revenue reaching $84.8 billion, marking a 39% gain and a 15-point acceleration from 1Q25.
Google’s committed backlog climbed by $222 billion sequentially to $462 billion at quarter-end, driven largely by new TPU chip agreements with external customers. These agreements are set to begin revenue recognition in late 2026, positioning Google Cloud for sustained top-line growth.
Operating margin for Google Cloud improved to 33% in 1Q26, up from 18% a year earlier, reflecting efficiency gains and robust demand for AI services. Enterprise AI revenue grew 800%, underscoring the accelerating contribution of AI workloads to Google Cloud’s profitability.
