Google Cloud just posted the kind of quarter that makes competitors’ investor relations teams reach for the antacids. Alphabet’s cloud division grew revenue 82% year-over-year in Q2 2026, hitting $24.8 billion and accelerating from an already impressive 63% growth rate in Q1.
To put that in perspective: Google Cloud was responsible for nearly half of Alphabet’s entire revenue increase and roughly two-thirds of its added operating profit.
The numbers that matter
Google Cloud’s operating income reached $8.8 billion in the quarter, more than tripling from $2.8 billion a year earlier. That translates to a 35.6% profit margin.
Meanwhile, the two incumbents posted respectable but comparatively modest results. Amazon Web Services grew 37% to $42.2 billion, which AWS called its fastest growth in 18 quarters. Microsoft Azure came in at 43% growth.
