Google Cloud revenue grows 63% to $20 billion, now 18% of Alphabet's business

2 articles · Updated · Fortune · Apr 29

In Q1 2026, Google Cloud's operating income tripled to $6.6 billion and its operating margin rose to 32.9%.
AI-driven demand fueled a $462 billion backlog, with investors responding positively as Alphabet shares rose 7% after earnings.
Google Cloud's rapid growth marks a shift in Alphabet's business mix, challenging the dominance of its traditional advertising segment and reshaping internal company culture.

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