Google Cloud Backlog Surpasses Alphabet's Trailing Revenue
Alphabet's CEO Sundar Pichai revealed during the company's earnings call on July 22, 2026, that Google Cloud revenue grew by an impressive 82% year over year in the second quarter of 2026. The cloud backlog hit a staggering $514 billion, surpassing Alphabet's trailing 12-month revenue of $446 billion as of June 30, 2026.
Although Search remains the main growth driver for Alphabet today, generating 55% of the company's total revenue, with a trailing 12-month revenue of $243 billion, Google Cloud is gaining momentum and is on track to become the biggest long-term growth driver. The cloud backlog surged 385% year over year in Q2.
Pichai emphasized that Search will remain the core business for Alphabet for at least a few more years, but Google Cloud's operating margin reached 35% last quarter, indicating significant potential for growth. With only a 'very small percentage' of overall workloads and enterprises having shifted to cloud, Pichai believes there is still a long runway for Google Cloud adoption.