Google Cloud revenue hit $24.8B, up 82%
Sundar Pichai broke the growth into three drivers:
New customers — Google more than doubled its customer acquisition velocity year over year.
Existing customers — they're expanding usage and exceeding their commitments by more than 50%, an acceleration over last quarter.
Partners — Marketplace transactions grew over 7X YoY.
Three engines, one direction. The fastest-growing of the three was the partner and Marketplace engine.
"We are driving growth with partners, with transactions on Google Cloud Marketplace growing over seven times year over year." - CEO
AI momentum is scaling:
~90% of the Fortune 100 are using Gemini Enterprise
~500 Cloud customers each processed >1T tokens in the last year. Over 2,000 enterprises consumed >100B tokens
Google’s Agent Development Kit reached ~70M total downloads in Q2
The number of AI workloads scanned/protected by Google Cloud security rose >45% QoQ
Google also uses AI internally in sales:
“83% of our sales team uses Gemini-assisted tools weekly, driving up to a 20% higher win rate when using customized pitch narratives.”
The backlog of customer cloud commitments crossed half a trillion dollars
It reached $514B, adding more than $50B in a single quarter.
Where's it coming from?
CFO Anat Ashkenazi explained:
"The majority of the backlog is related to typical GCP contracts from a broad mix of customers, and we expect to recognize just over 50% of the total backlog as revenue over the next 24 months."
Not a handful of frontier-lab megadeals - it's broad-based.
The fair question about GCP’s 82% growth was: Did TPU system sales influence it?
Google began recognizing revenue from selling TPUs into customer data centers for the first time this quarter. Ashkenazi answered it directly: "Cloud growth accelerated meaningfully even after excluding the impact of TPU system sales." So this is mostly core demand.
Google says the ceiling is still supply, not demand
"We're still in a supply-constrained environment, and we are seeing very strong demand."
Its response was to raise full-year capex guidance to $195–205B, from $180–190B, "primarily due to an acceleration in the delivery of capacity to meet growing demand."
When a hyperscaler spends more because it can't build fast enough, the market's appetite is clear.
Pichai highlighted how early we are in the AI demand cycle:
"We used to talk about Cloud itself, where a very small percentage of overall workloads in enterprises have shifted to Cloud. Now think about what percentage of workloads are really AI-native and AI-enabled. It again feels very, very early."
If Marketplace transactions are already growing this quickly while AI is still early, it’s easy to see how central Cloud GTM will become.
Are you capturing Google Cloud Marketplace’s 7X transaction growth in your pipeline?
