Google Cloud posts 63% revenue growth in Q1, fastest pace since 2020, as AI demand reshapes cloud market

Google Cloud revenue surged 63% to $20 billion in the first quarter, marking its fastest growth rate since the company began reporting cloud results in 2020. Revenue from AI models grew 800% year over year. The cloud backlog nearly doubled to over $460 billion during the quarter.

AWS revenue grew 28% year over year to $37.6 billion, and Microsoft Azure Cloud posted 40% growth to $34.7 billion. All three major cloud providers are accelerating capex spending to meet AI infrastructure demand — Amazon plans $200 billion in capex in 2026, Microsoft expects to spend $190 billion in fiscal 2026, and Alphabet boosted its capex forecast to $185 billion at the midpoint.

Google Cloud increased its worldwide market share to 14% in Q1, while AWS controlled roughly 28% and Microsoft held 21%, according to Statista. Enterprise AI solutions became Google Cloud's primary growth driver for the first time.