Alphabet Reports $514 Billion Google Cloud Backlog as 2026 Capex Rises to $205 Billion
Updated
Updated · The Motley Fool · Jul 28
Alphabet Reports $514 Billion Google Cloud Backlog as 2026 Capex Rises to $205 Billion
3 articles · Updated · The Motley Fool · Jul 28
Summary
$514 billion in Google Cloud backlog gave Alphabet a new growth marker in Q2, dwarfing the unit's $24.8 billion quarterly revenue and signaling years of contracted demand.
Alphabet paired that surge with higher 2026 capital spending guidance of $195 billion to $205 billion, arguing more AI computing capacity is needed to work through the backlog faster.
Google Cloud's operating momentum remained strong, with revenue up 82% year over year and operating margin at 36%, even as investors focused on the heavier spending plan.
The update adds context to Wall Street's recent unease over Alphabet's AI outlays, suggesting the company is prioritizing capacity expansion to convert booked demand into recurring revenue.