Google Cloud Tops AWS and Azure With 2x Backlog Growth, Lifts 2026 AI Capex
Updated
Updated · Seeking Alpha · Jun 19
Google Cloud Tops AWS and Azure With 2x Backlog Growth, Lifts 2026 AI Capex
3 articles · Updated · Seeking Alpha · Jun 19
Summary
Google Cloud posted sharper revenue growth and margin gains than AWS and Azure, with sequential backlog growth doubling and pointing to faster expansion into fiscal 2026.
Demand is still running ahead of capacity, prompting Google to plan elevated AI and cloud capital spending in fiscal 2026 and maintain supportive guidance for fiscal 2027.
Google Search also accelerated for a fourth straight quarter as AI monetization spread across advertising, reinforcing the company’s broader AI revenue story beyond cloud.
At about 25x forward non-GAAP P/E, the stock sits only modestly above its five-year average, suggesting analysts see room for further upside if earnings keep compounding.