Deutsche Bank Upgrades Google Cloud Revenue Forecast to 70% Growth Ahead of July 22 Earnings

Deutsche Bank upgraded its outlook for Alphabet ahead of the company's second quarter earnings on July 22, raising Google Cloud's revenue growth forecast to 70% from 65%, with further acceleration to 75% expected in the second half of 2026. The bank projects Google Cloud revenue of $190-195 billion in 2027, significantly above market consensus of $142 billion. Google Cloud's backlog reached $462 billion as of Q1 2026, up 400% year-over-year. The bank emphasized that despite raising capital expenditure forecasts to $325 billion in 2027 and $365-370 billion in 2028, Alphabet's financing remains robust, with $127 billion in cash and projected cumulative operating cash flow of $420 billion by end-2027.
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