Google’s cloud computing business is booming, with the tech giant beating analysts’ second-quarter estimates. The company reported revenue of $13.6 billion, a 32% increase from last year, and a backlog worth $106 billion. To meet growing demand, Alphabet is investing an additional $10 billion in the service for the rest of 2025.
Google Cloud now holds the third-largest market share in the global cloud infrastructure space, behind Amazon Web Services and Microsoft Azure. The company’s revenue has been steadily increasing, reaching $12.3 billion in the first quarter.
Analysts expect Google Cloud to continue growing, with some estimates suggesting it will reach profitability by 2026. However, they also note that security risks and conversion costs may slow down adoption rates.
Google CEO Sundar Pichai said the company is committed to expanding its cloud service, investing $85 billion in capital expenditures for 2025. Despite this increased investment, Alphabet still expects Google Cloud to operate in a “tight demand-supply environment” going into 2026.
The company’s stock closed at $193.20 on Thursday, following an opening price of $197.89 and a closing price of $191.51 the previous day.
Source: https://qz.com/google-betting-billions-cloud-business