Sundar Pichai's Alphabet Has Grown Google Cloud Revenue 82% Year Over Year. Here's Why That Growth Rate Justifies the Company's Capex Bet.
Alphabet raised its 2026 capital expenditures outlook from a midpoint of $185 billion to $200 billion, with a higher figure expected next year. Google Cloud revenue is growing 82% year over year, faster than rivals Amazon and Microsoft.
Why it matters — Google Cloud's rapid growth is cited as justifying Alphabet's increased capital spending, which is a key factor for investors monitoring the company's returns on its heavy infrastructure investment.