Sundar Pichai Reported Alphabet's Cloud Backlog Hit $514 Billion After 82% Revenue Growth Last Quarter, With Nearly 90% of the Fortune 100 Using Gemini Enterprise. Is Google Cloud Becoming a Bigger Growth Driver Than Search?
That massive backlog offers meaningful revenue visibility as demand continues to heat up for Google Cloud's AI solutions and infrastructure.
Overview
Tech sector investors already knew Google Cloud was growing rapidly, but even most bulls were not prepared for the magnitude of growth that showed up in Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) second-quarter results. Cloud revenue surged by 82% year over year, and on the earnings call, CEO Sundar Pichai highlighted the unit's $514 billion backlog.
AI has been a major component of Alphabet's recent success, with nearly 90% of Fortune 100 companies using Gemini Enterprise. Alphabet has long been known for its ubiquitous search engine, but cloud computing may be more important than search in future earnings reports.
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Originally published at www.fool.com.