Google Cloud reported 82% year-over-year revenue growth to $24.8 billion in Q2 2026, beating the $22.3 billion consensus.

The growth rate now mirrors NVIDIA‘s Data Center segment, as both revenue lines feed from the same AI model training and inference demand.

CFO Anat Ashkenazi confirmed TPU system sales to customer data centers for the first time, but noted the contribution was small, with the bulk expected in 2027.

Cloud operating income more than tripled to $8.8 billion, and operating margin expanded by 14.9 points to 35.6%, nearly closing the gap with AWS (37.7%).

Backlog reached $514 billion, up 385% year-over-year, with over half expected to convert within 24 months.

Google raised full-year 2026 capex guidance to $195–$205 billion and projected further increases in 2027, reflecting the ROI on AI infrastructure.

The convergence between Google Cloud‘s rental revenue and NVIDIA‘s chip sales underscores the structural shift: both are downstream of the same AI workload demand, with Google benefiting from economies of scale and margin expansion while AWS margin slipped slightly.