Google · TechCrunch AI
Google Cloud surpasses $20B, but confirms growth was capacity-constrained
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Google Cloud, the business under parent company Alphabet that provides enterprise AI solutions, had a blowout first quarter, with revenues topping $20 billion for the time, a 63% increase from the same period last year.
Key facts
- Google Cloud, the business under parent company Alphabet that provides enterprise AI solutions, had a blowout first quarter, with revenues topping $20 billion for the time, a 63% increase
- Pichai noted other cloud milestones, including new customer acquisition doubling year-over year, deal momentum doubling the number of $100 million to $1 billion deals year-over-year, with the company
- Alphabet CEO Sundar Pichai told analysts on the Q1 2026 earnings call on Wednesday that this growth came from “strong demand” for Gemini Enterprise and its AI solutions, and pointed to an increased
- Still, the exec warned, there were constraints to this growth, noting that Google Cloud’s backlog had doubled in the quarter to $462 billion
Summary
In the first quarter of 2026, the company said its cloud growth was driven by strong performance in the Google Cloud Platform, which grew at a higher rate than the Google Cloud division’s overall revenue growth. (The Cloud division includes a variety of services like infrastructure, data analytics, AI/ML tools, and Google Workspace.) Alphabet CEO Sundar Pichai told analysts on the Q1 2026 earnings call on Wednesday that this growth came from “strong demand” for Gemini Enterprise and its AI solutions, and pointed to an increased demand for infrastructure, including TPU hardware and data centers. AI solutions were the largest driver of cloud growth, with products built on Google’s genAI models growing nearly 800% year-over-year.