Sundar Pichai reports Alphabet's quarterly profits rose to $112 billion as Google Cloud revenue surged 82% year-over-year.
Sundar Pichai, CEO of Alphabet, reported that the company achieved a staggering $112 billion in quarterly profits, a significant increase from the $25 billion recorded during the same period last year. While the majority of this windfall resulted from investments in other tech companies like SpaceX and Anthropic, the company also saw a 24% increase in total revenue to $119.8 billion. A primary driver of this growth was the Google Cloud division, which saw revenue spike 82% to $24.8 billion, exceeding analyst expectations. This success was fueled by rapid enterprise adoption of AI infrastructure and custom solutions, leaving a cloud backlog of $514 billion. Additionally, Google Services revenue rose 15% to $94.5 billion, supported by growth in Search and YouTube advertising. Despite these gains, the administration of the company faces high costs. Alphabet raised its 2026 capital expenditure guidance to $195–$205 billion to overcome computing bottlenecks. Although the company posted a negative free cash flow for the first time, Sundar Pichai expressed confidence that these heavy investments will redefine the company's capabilities and drive long-term growth.