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3h ago

Alphabet’s Momentum Builds as New Survey Elevates GCP, Gemini and Reported UK MoD Cloud Deal Emerges

Robust Q2 results plus a larger cloud backlog reinforce a second earnings pillar beyond advertising.

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Overview

  • TD Cowen lifted its Alphabet price target to $270 and kept a Buy rating following its 2025 GenAI Public Cloud Survey.
  • The survey found Google Cloud Platform as the second-choice provider for companies adding clouds, with 80% awareness versus 94% for AWS and 93% for Azure.
  • Google’s Gemini ranked as the second-most-used LLM at 54% of respondents, behind OpenAI at 73%, with Gemini usage up from last year.
  • Alphabet’s Q2 revenue rose 14% to about $96.4 billion as Google Cloud grew 32% to $13.6 billion, doubled operating income to $2.8 billion, expanded margin to 20.7%, and lifted backlog to roughly $106 billion.
  • Reports say Google Cloud secured a £400 million UK Ministry of Defence sovereign cloud contract to support secure data processing and AI capabilities.