Google Cloud revenue tops $20 billion in Q1 2026 with 63% year-over-year growth, but capacity constraints limit further expansion

Google Cloud generated revenues exceeding $20 billion in the first quarter of 2026, a 63% increase from the same period last year. Products built on Google's generative AI models grew nearly 800% year-over-year, and Google Gemini Enterprise grew 40% quarter-over-quarter.

AI token growth via Google Cloud's API reached 16 billion tokens per minute in Q1 2026, up from 10 billion in the fourth quarter. New customer acquisition doubled year-over-year, and the company signed multiple "billion-dollar-plus" deals.

Google Cloud's backlog doubled in the quarter to $462 billion. CEO Sundar Pichai stated the company is "compute constrained in the near-term" and that cloud revenue would have been higher if it could meet all demand. The company expects to work through 50% of the backlog over the next "24 months."