Peter Smith
● Alphabet ($GOOGL, $GOOG) just posted some eye-popping numbers. According to Barnabe Investit, the company's backlog shot up 82% over the past year, hitting $157.7 billion in Q3 2025 — with 46% of that growth coming in just the last quarter. For context, this backlog represents signed deals that haven't been delivered yet, essentially locking in future revenue.
● What's driving this? AI deals. Big ones. CEO Sundar Pichai mentioned that Alphabet closed more billion-dollar+ contracts in the first three quarters of 2025 than it did in the previous two years combined. These aren't small pilots — they're multi-year commitments spanning Google Cloud, AI infrastructure, and enterprise platforms.
● Why this matters: Alphabet is actively shifting away from pure ad dependency. By stacking up long-term AI contracts, the company is building more predictable revenue streams and reducing exposure to ad market swings. It's a strategic pivot that strengthens their financial foundation.
Peter Smith
