Alphabet Reports 514 Billion Google Cloud Backlog Ahead of Earnings

Alphabet Inc. reported a Google Cloud backlog of 514 billion, consisting of signed customer contracts not yet recognized as revenue. This surge is driven by high demand for artificial intelligence computing power. The company expects to recognize more than half of this backlog within the next 24 months, with the remainder, including sales of custom AI chips, expected in 2027.

Investors are focusing on cloud margins and capital expenditures ahead of the company's third-quarter earnings report scheduled for October 28, 2026. Capital expenditures reached nearly 45 billion in the most recent quarter, and the company has raised its 2026 forecast to between 195 billion and 205 billion. Spending is projected to increase further in 2027.

Chief Executive Officer Sundar Pichai has expressed increased optimism regarding the company's trajectory, stating he has "gotten more bullish on the opportunities ahead."