Google Cloud Revenue Surge Shows Enterprise AI Demand Against Amazon
In Q2 2026, Google Cloud revenues jumped 82% year over year to $24.8 billion, boosted by GCP, enterprise AI solutions, AI infrastructure and core services. Operating income more than tripled to $8.8 billion and margin rose to 35.6%. Cloud backlog reached $514 billion on strong enterprise AI demand, though Alphabet says it is supply constrained by available compute capacity.