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Google Cloud revenue surges 82% to $24.8B, easing AI spending concerns
Alphabet's Google Cloud revenue jumped 82% year-over-year to $24.8 billion, driven by enterprise AI adoption, helping the company post record profits of $112.1 billion.
Alphabet reported blockbuster quarterly earnings on Wednesday, with Google Cloud leading the charge as revenue from the segment soared 82% from a year ago to $24.8 billion. The figure handily beat Wall Street expectations of $22.46 billion and marked an acceleration from last quarter's 63% growth.
The cloud business was fueled by enterprise AI solutions and infrastructure adoption, Alphabet said. The company's cloud contracting backlog, representing future revenue from signed deals, swelled to $514 billion.
Overall, Alphabet's revenue rose 24% year-over-year to $119.8 billion, while profit more than quadrupled to $112.1 billion from $28.1 billion a year earlier. Google Services revenue, which includes search and YouTube, grew 15% to $94.5 billion.
CEO Sundar Pichai said on the earnings call that AI investments are "redefining what's possible across every part of our business." The strong cloud results come amid investor concern over Alphabet's massive AI spending, which now appears to be paying off handsomely.