Alphabet Surpasses AWS with Record Cloud Growth

Alphabet's cloud segment, Google Cloud, has delivered strong growth in its latest quarter, surpassing Amazon Web Services (AWS) on several key metrics. In Q2 2026, Alphabet reported revenue of $119.8 billion, with Google Cloud margins expanding to 35.6%. This is a significant increase from last year's figures and outpaces AWS' operating margins of 39.4%.

This growth in cloud segment profitability has led to Alphabet trading at a lower price-to-earnings (P/E) ratio compared to Amazon, with a P/E of 17 versus Amazon's 21. Despite this, Alphabet's stock performance over the past year has been stronger than Amazon's.