• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

2

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon

1

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO

2

Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates

3

Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
TechGoogle

Google Brags About Its Growing Cloud Business. But It’s Still Dwarfed By Amazon

By
Danielle Abril
Danielle Abril
Down Arrow Button Icon
By
Danielle Abril
Danielle Abril
Down Arrow Button Icon
July 25, 2019, 7:42 PM ET

Google’s parent company, Alphabet, says its cloud services business is gaining traction.

The company said on Thursday as part of its second quarter earnings report that its cloud unit, which includes its data center business plus corporate versions of Gmail and Google Docs, has an annual revenue run rate of more than $8 billion. Run rate is a prediction of future financial results based on the most recent revenue.

The news shows progress in a business that Google has been heavily investing in recent years as it aims to take on competitors like Microsoft’s Azure and Amazon’s AWS.

The latest run rate prediction comes after Google CEO Sundar Pichai declined in the first quarter to disclose financial details about the cloud business. Early last year, Alphabet said its cloud business had a $4 billion annual revenue run rate.

Last year, in an effort to jumpstart its cloud business, Google hired a new leader for the division, Thomas Kurian, former president of Oracle. He’s been investing heavily in cloud, including recently buying cloud company Looker for $2.6 billion.

The cloud business accounted for the greatest increase in the number of employees for Alphabet’s product areas. Alphabet’s workforce totaled 107,646 in the second quarter. Google declined to provide more details.

Whatever the case, the hiring spree is expected to continue. Pichai said on Thursday that the division’s sales team would triple over the next few years.

But Google Cloud still faces tough competition from Amazon, which said on Thursday that its cloud unit’s annual revenue run rate is $33 billion, nearly four times the size of Google’s.

Overall, Alphabet beat Wall Street’s expectations by reporting $38.9 billion in quarterly revenue versus an estimated $38.2 billion. That revenue represents a 19% increase over the same period last year.

Alphabet credited its revenue growth to its search ads business, followed by YouTube, and then its cloud business. The company’s cloud business was said to be the top source of growth in its “other revenues” category, which also includes mobile devices and the Google Play Store. The “other revenue” category grew to $6.18 billion this year from $4.43 billion in the second quarter last year.

Alphabet reported that it had a $9.95 billion quarterly profit, up from $3.2 billion the same quarter a year ago.

The results, plus a promised $25 billion stock buyback, helped to lift Alphabet’s stock more than 9% to $1,239.50 per share in after-hours trading.

Cloud CEO Kurian, who took the helm of the unit in November, has been heavily focused” on delivering a competitive advantage in Google’s cloud business, Pichai said on Thursday. Kurian also has been working to expand the executive team that handles consumer-facing operations, like sales and marketing.

In April, Google Cloud hired SAP veteran Robert Enslin to serve as the organization’s president of global customer operations. Then this month, the organization also hired Kirsten Kliphouse, formerly of Red Hat and Microsoft, to serve as its North American sales head.

Google also has been expanding its cloud footprint globally. It announced the opening of a data center in Osaka, Japan in May and plans to open a seventh U.S. facility in Las Vegas. 

Pichai said he’s confident that the company will continue expanding its cloud services, whether that’s through acquisitions or organic growth. 

About the Author
By Danielle Abril
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Brian Schimpf gestures with both hands as he speaks on stage.
Startups & VentureBrainstorm Tech
Anduril CEO Brian Schimpf says economic warfare is the ‘new normal’ for military conflicts—and the U.S. needs to get serious
By Lily Mae LazarusJune 8, 2026
6 hours ago
Pentagon accuses Alibaba, Baidu and BYD, three of China’s biggest companies, of supporting the Chinese military
AsiaAlibaba Group
Pentagon accuses Alibaba, Baidu and BYD, three of China’s biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
7 hours ago
Twitch CEO: Social media has become ‘antisocial’ and can’t match the shared, human connection of livestreaming
Big TechBrainstorm Tech
Twitch CEO: Social media has become ‘antisocial’ and can’t match the shared, human connection of livestreaming
By Sebastian HerreraJune 8, 2026
7 hours ago
Two men sitting on chairs on a stage
Future of WorkBrainstorm Tech
Your career needs a ‘gym membership’ to keep up with continuous AI advancements, says Campus founder Tade Oyerinde
By Amanda GerutJune 8, 2026
7 hours ago
ChatGPT maker OpenAI confidentially files for IPO, a week after Anthropic
Startups & VentureOpenAI
ChatGPT maker OpenAI confidentially files for IPO, a week after Anthropic
By Bloomberg, Shirin Ghaffary and Bailey LipschultzJune 8, 2026
8 hours ago
Anthropic’s Boris Cherny, creator of Claude Code, says there are days he manages tens of thousands of AI agents at once
AIBrainstorm Tech
Anthropic’s Boris Cherny, creator of Claude Code, says there are days he manages tens of thousands of AI agents at once
By Sharon GoldmanJune 8, 2026
9 hours ago

Most Popular

'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
Economy
'We didn’t see this coming': Wall Street eats its forecasts as stocks sell off globally on fear of AI bubble ahead of SpaceX IPO
By Jim EdwardsJune 8, 2026
20 hours ago
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
Success
Gen Zers are arriving at college unable to even read a sentence—professors warn it could lead to a generation of anxious and lonely graduates
By Preston ForeJune 7, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
9 hours ago
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
Economy
'The golden years are not golden': Boomers are hoarding most of America's wealth and power because they're terrified of outliving their money
By Nick LichtenbergJune 7, 2026
2 days ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
17 hours ago
SpaceX's IPO will also be a massive selling event triggering big price dislocations across the stock market as investors dump shares to buy SPCX
Investing
SpaceX's IPO will also be a massive selling event triggering big price dislocations across the stock market as investors dump shares to buy SPCX
By Jason MaJune 7, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.