Google reported a significant rise in its cloud business, which is largely driven by enterprise AI adoption. The company’s cloud revenue increased by 82% year-over-year, reaching $24.8 billion, surpassing the previous quarter’s 63% growth to $20 billion and beating Wall Street’s forecast of $22.46 billion. This growth was attributed to the increasing demand for enterprise AI solutions and infrastructure, according to the earnings report. The company also highlighted a backlog of cloud contracting work totaling $514 billion, indicating strong future revenue potential.
Google’s overall revenue rose 24% to $119.8 billion, with Google Services revenue increasing 15% to $94.5 billion. CEO Sundar Pichai emphasized that AI investments are reshaping the company’s operations, noting the app’s 950 million monthly active users for Gemini, Google’s AI chatbot, up from 750 million in Q4 2025.
The company’s profit reached $112.1 billion, up from $28.1 billion the previous year. Despite the high capital expenditures estimated between $180 billion and $190 billion for the year, Pichai expressed confidence in the return on investment, citing strong demand indicators and long-term deals.
Source: techcrunch
