Alphabet reports 82% rise in Google Cloud revenue to $24.8B

Alphabet Inc. reported a surge in its Google Cloud revenue, which jumped 82% year-over-year to $24.8 billion in the fiscal second quarter ended in June, significantly exceeding analyst expectations. The company's overall revenue grew 24% to $119.8 billion, marking its 12th consecutive quarter of double-digit growth, while net income reached $112.1 billion.

The results, announced on July 23, 2026, were driven by intense demand for artificial intelligence infrastructure and enterprise AI tools. CEO Sundar Pichai stated that the company's momentum is fueled by its integrated AI portfolio, which includes chips, models, and security platforms. He highlighted the rapid adoption of the Gemini Enterprise platform, noting that nearly 90% of Fortune 100 companies are now using it. The company also reported that monthly active users for its Gemini app increased to 950 million, up from 750 million in the fourth quarter of 2025.

Despite the strong performance, Alphabet faces significant capital expenditure pressures as it races to build enough computing capacity. The company spent $44.9 billion on capital projects in the quarter, with approximately 60% allocated to servers. For the full...