The search giant reported total quarterly revenue of $119.8 billion, a 24% increase year-over-year. Beyond the cloud gains, Google Services revenue climbed 15% to $94.5 billion, while the company’s profit reached $112.1 billion. CEO Sundar Pichai credited this growth to the integration of AI across all business segments, noting that Gemini now commands 950 million monthly active users, up from 750 million in late 2025. This marks the company’s 12th consecutive quarter of double-digit revenue growth, cementing a period of significant expansion.
Google Cloud Revenue Surge Defends Massive AI Spending
Alphabet investors skeptical of heavy AI expenditure found a powerful rebuttal in the latest quarterly results, where Google Cloud revenue surged 82% to $24.8 billion. This performance, fueled by enterprise adoption of AI infrastructure, comfortably outpaced Wall Street expectations and signaled that the company’s massive capital investments are finally yielding tangible financial momentum.
Despite these gains, capital expenditures remain substantial, with projected annual spending on data centers and chips reaching between $180 billion and $190 billion. During Wednesday’s earnings call, analysts questioned the sustainability of such aggressive outlays. Pichai defended the strategy, citing a $514 billion backlog in cloud contracting work as evidence of long-term demand. He argued that current market dynamics are healthier than they were a year ago, providing the necessary confidence to continue scaling infrastructure capacity through 2027.
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