Google Cloud Surges Past Amazon Web Services in Second-Quarter Growth

Amazon Web Services' (AWS) second-quarter performance was solid, but Google Cloud's growth outpaced its rival.

While AWS reported revenue growth of nearly 37% and a year-over-year improvement in operating income of more than 63%, Alphabet's Google Cloud business grew its top line by almost 82%, resulting in operating income growth of over 200%.

This disparity may be attributed to the fact that Google Cloud started from a smaller baseline, making it easier for Alphabet to produce a larger increase. However, data from Synergy Research Group indicates that Google Cloud is gaining market share while AWS is losing ground.

According to the chart provided by Synergy Research Group, Amazon Web Services reported 28% of Q2's worldwide total public cloud revenue, extending a downtrend that has been in place since 2022; Microsoft's share peaked in early 2024 and stands at 20%, while Google Cloud reached a new record of 15% last quarter.

The data suggests that on a whole-dollar basis, Google Cloud revenue grew by more than $11.1 billion, nearly matching Amazon Web Services' net growth of almost $11.4 billion.