Alphabet investors have publicly worried that the company’s huge AI spending isn’t worth it. With the company’s latest earnings report, those investors should be able to relax a bit.

The bottom line: Google’s cloud business, driven largely by the adoption of enterprise AI, is booming. The search giant saw Google Cloud revenue increase 82% from this time last year, reaching $24.8 billion. That’s well above last quarter’s generous year-over-year growth, which saw revenue rise 63% to $20 billion, and comfortably beats what Wall Street analysts were expecting for this quarter’s growth (the expectation was $22.46 billion).

Those cloud gains were largely driven by enterprise AI solutions and enterprise AI infrastructure adoption, the company said, while noting that its portfolio of cloud contracting work (that is, work that it has not yet converted into revenue) had grown to $514 billion.

The company’s profits reached $112.1 billion, representing a big jump from this time last year, when the company reported $28.1 billion in profits, the company’s earnings report shows. Meanwhile, Alphabet’s overall revenue grew 24% year over year during the latest quarter to $119.8 billion. The company also saw Google services revenue increase 15% to $94.5 billion.

“Our investments in AI are redefining what’s possible in every part of our business,” Google CEO Sundar Pichai said during Wednesday’s earnings call. “We have exciting momentum across the board.”

More people are also adopting Gemini, Google’s AI chatbot, as the app currently has 950 million monthly active users, the company said. In the fourth quarter of 2025, Google reported that the app had 750 million users.

It’s worth noting that the revenue increase is not unusual for Google. This marks the company’s 12th consecutive quarter of double-digit revenue growth. But even by that standard, this quarter represents a particularly prosperous period for the tech giant.

Alphabet’s spending remains considerable, and its capital expenditures (the money it spends on building data centers, buying chips and expanding infrastructure) are estimated at between $180 billion and $190 billion for the year, a fact that was not lost on analysts during Wednesday’s earnings call. Several pressed Pichai on when and how much those investments will pay off.

“I think our investments in computing capacity will be made in ’27,” he said. “We are seeing strong demand indicators, including long-term agreements,” he continued. “I think if anything, the momentum looks healthier than it did about a year ago, and that’s what gives us the confidence to undertake those investments,” he said.