Alphabet's cloud unit beat quarterly revenue estimates on strong enterprise demand for artificial intelligence infrastructure.
Google Cloud revenue surged 63% to $20 billion in the first quarter, topping analyst expectations of a 50.1% increase. Total Alphabet revenue rose 22% to $109.9 billion.
The cloud unit's backlog nearly doubled quarter-over-quarter to over $460 billion. Alphabet has secured major deals including expanded AI infrastructure partnerships with Meta and Palo Alto Networks.
Alphabet remains the third-largest cloud provider globally, behind Amazon Web Services and Microsoft Azure. Strong demand for cloud-based AI services continues to outstrip supply across the industry.
The company's Gemini AI models are gaining traction, and a partnership to power Apple's AI features, including Siri upgrades, could significantly expand Google's reach.
Alphabet shares rose about 4% in extended trading.