Google Cloud revenue jumps 82% as backlog hits $514B and AI capex keeps rising
RihardJarc · x · 2026-07-23
Google is still spending aggressively on AI infrastructure, and the numbers on its cloud business are getting stronger:
- Google Cloud revenue rose 82% YoY, and management said GCP grew faster than Cloud overall.
- Cloud operating margin tripled to 35.6% from 20.7% a year ago.
- Backlog reached $514B, with management expecting to recognize just over half of it as revenue over the next 24 months.
- The higher capex range is being driven by accelerating capacity delivery rather than component price hikes.
- Management also signaled it may pass through higher input costs if component prices keep rising.
The post argues that hyperscalers like Google, Amazon, Microsoft, and Meta are turning AI capex into a long-term economic moat.
Related event: Google Cloud Doubles in Q2 but AI Spending Turns Free Cash Flow Negative(60 posts)→
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