Alphabet's Google Cloud backlog reached $514 billion in the second quarter of 2026 after revenue jumped 82% year over year, CEO Sundar Pichai said on the company's earnings call. The backlog now exceeds Alphabet's trailing 12-month revenue, even though Cloud's operating income still accounts for only 22% of the company's total operating profit.
Google Cloud's contracted backlog hit $514 billion in the second quarter of 2026 after revenue grew 82% year over year, Alphabet CEO Sundar Pichai said on the company's July 22 earnings call. That backlog is now larger than Alphabet's trailing 12-month revenue of $446 billion through June 30, 2026.
Cloud outgrows the rest of big tech
The backlog surged 385% year over year in the quarter, and Google Cloud's operating margin reached 35% last quarter. Even so, the segment's operating income still accounts for only 22% of Alphabet's total operating profit.
According to Crypto Briefing, Alphabet's overall Q2 revenue hit $119.8 billion, a 24% increase year over year. Google Cloud itself brought in $24.8 billion for the quarter. Google Cloud's 82% growth rate nearly doubled Microsoft Azure's 43% expansion. It also more than doubled AWS's 37% growth in the same period.
Search still carries the company today
Search and other advertising revenue grew 17% year over year in the second quarter, up from a 12% increase in the year-ago quarter. On a trailing 12-month basis, Search generated $243 billion, or 55% of Alphabet's total revenue, while Cloud remains smaller at 17% of the trailing total.
According to Fool, Pichai said "only a very small percentage of overall workloads and enterprises have shifted to cloud", pointing to a long runway for further adoption. Alphabet also raised its full-year 2026 capital expenditure guidance to between $195 billion and $205 billion, according to Crypto Briefing.
If the backlog keeps converting into revenue near Cloud's current operating margin, the division stands to contribute a much larger share of Alphabet's profit over the next decade.
Sources: The Motley Fool, Crypto Briefing
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