Google Cloud revenue jumps 82% to $24.8 billion as Alphabet defends AI spending

Google Cloud revenue jumped 82% year over year at Alphabet. It reached $24.8 billion in the fiscal second quarter.

That gave the company a sharp retort. Investors have questioned the cost of the AI buildout and whether it is worth it.

Google Cloud tops estimates as total revenue hits $119.8 billion

The leap beat Wall Street’s own figure. On Wednesday’s earnings release, analysts had expected about $22.46 billion. It also beat the unit’s own recent cadence, with cloud sales having climbed 63% to $20 billion just three months ago. The segment’s unbilled contract backlog was now $514 billion, Google said, driven by companies buying its AI infrastructure and enterprise AI tools.

According to Cryptopolitan’s live coverage of the results, Alphabet posted total revenue of $119.8 billion, a 24% increase and better than the $116.93 billion expected by LSEG-tracked analysts. It was the 12th consecutive quarter of double-digit growth.

Earnings came in at $9.11 per share versus a $2.89 forecast. About $98 billion of that came from other income, mostly paper gains on Alphabet’s holdings in other companies.

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