Really robust Google cloud growth. Cloud revenue increased 82% year-over-year in this quarter.
Nearly hits $100 B annual run rate
Remaining performance obligations （RPOs）， or contracts that Google still has to deliver on， hit $514 B. Wall Street analysts were projecting $488 B.
For some context， big Tech is expected to spend well over $700 B this year primarily on AI， while Morgan Stanley has pegged the estimated spend at more than $1 trilion for the next year.
Google's financial results is the first major test this earnings season for the massively rising capital expenditure trade behind the AI boom.
Google Cloud is also benefiting from the deal with Anthropic. Anthropic's existing TPU consumption likely lifted Q2 revenue as Google brought portions of the promised 1M-TPU capacity online during 2026， billing training and inference usage through Google Cloud.
For context on the deal， Anthropic first committed to buying up to 1M Google TPUs， worth tens of billions， adding over 1GW during 2026.
It later expanded that arrangement with Google and Broadcom to 5GW of next-generation TPU capacity beginning in 2027， while keeping AWS as its primary cloud and training provider.