Google Cloud's Revenue of First Quarter Exceeded $20 Billion

AI Google

Google Cloud, a subsidiary of Alphabet that provides AI solutions for enterprises, performed strongly in the first quarter of 2026, with revenue exceeding $20 billion for the first time, an increase of 63% compared to the same period last year.

Alphabet CEO Sundar Pichai told analysts during Wednesday’s first quarter earnings call that this growth comes from “strong demand” for Gemini Enterprise and its AI solutions, and pointed out that demand for infrastructure, including TPU hardware and data centers, is also increasing. Specifically, the growth rate of Google Cloud Platform is higher than the overall revenue growth rate of the Google Cloud division, which offers services including infrastructure, data analytics, AI/ML tools, and Google Workspace.

AI driven growth, with multiple indicators reaching new highs

AI solutions are the biggest driving force for cloud growth. Products built on Google’s generative AI model have grown nearly 800% year-on-year. Google Gemini Enterprise grew 40% month on month. The number of AI tokens processed through APIs increased from 10 billion per minute in the fourth quarter to 16 billion per minute.

Pichai also listed other milestone developments: the acquisition of new customers doubled year-on-year; The trading momentum is strong, with the number of transactions between $100 million and $1 billion doubling year-on-year, and the company has also signed multiple transactions exceeding $1 billion. The actual expenditure of the customer exceeded the initial commitment by 45%.

Due to limited computing power, the backlog of orders has doubled

However, Pichai also warned that growth is limited by production capacity. He revealed that Google Cloud’s backlog of orders doubled to $462 billion this quarter.

Obviously, our computing power is limited in the short term, “Pichai said.” For example, if we could meet the demand, cloud revenue could have been higher. We are dealing with this situation and continuing to invest. We have a robust long-term planning framework… There are extraordinary opportunities ahead

The company expects to digest about 50% of the backlog orders in the next 24 months. The company has huge revenue potential in cloud computing infrastructure and direct sales of TPU hardware to some customers. Pichai told investors that Google’s approach of focusing on capital investment returns will help the company continue to invest appropriately in “cutting-edge fields”.