Alphabet’s Google Cloud revenue grew by 31.2% to $41.04 billion in the trailing nine-month period, with a cloud backlog of $155 billion. AI and security initiatives are expected to drive further growth. Amazon leads the cloud market with 29%, ahead of Microsoft at 20% and Google Cloud at 13%.

Amazon commits $125 billion in capex for AWS infrastructure, leading in cloud expansion. Microsoft Azure revenue surged by 40% in Q1 2026, with strong AI demand. Alphabet stock outperformed the sector by 60.5% in the past year, trading at a premium valuation with a forward P/S of 9.67X.

Google Cloud’s collaboration with Palo Alto Networks and the pending acquisition of Wiz are expected to enhance competitive strength. Microsoft’s cloud revenue growth is driven by AI demand. Alphabet’s Zacks Rank #3 holds a Value Score of D, with estimated earnings growth of 31.6% in 2025.

Read more at Nasdaq: AI & Security Push Aids Google Cloud: What’s Ahead for GOOGL Stock?