Gene Munster Sees GOOGL Q2 Cloud Revenue Jump Over 65% Ahead Of Estimates

July 22, 2026 - 18:57

Gene Munster, a well-known tech analyst, has predicted that Alphabet's Google Cloud business will post a revenue jump of more than 65% in the second quarter, significantly outpacing current Wall Street estimates. In a post on X, Munster highlighted that Google is doing an excellent job of converting traffic from its AI Overview and AI Mode features into actual Search revenue. He believes this conversion is a key driver behind the company's accelerating cloud growth, as businesses and consumers increasingly rely on Google's AI-powered tools.

Munster's forecast suggests that Google Cloud is not just riding the broader AI wave but is also capitalizing on its own product integrations. The analyst pointed out that the strong performance in cloud, combined with a resilient core search business, should push Alphabet's overall earnings well above consensus expectations. While many investors have focused on the competitive pressure from Microsoft and Amazon in the cloud space, Munster argues that Google's unique position in AI search and enterprise tools gives it a distinct advantage. The report comes ahead of Alphabet's official Q2 earnings release, which is expected later this month. If Munster's prediction holds true, it would mark another quarter of explosive growth for Google Cloud, reinforcing the narrative that the company's massive AI investments are finally paying off in tangible revenue gains.