Google Cloud Revenue Growth Forecast from TPU Licensing and Wiz Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Should l Buy GOOG?
Source: seekingalpha
- Revenue Growth Forecast: According to Wells Fargo's analysis, Google Cloud Platform is expected to grow by 4% in 2026 and 7% in 2027, primarily driven by the TPU licensing agreement and the Wiz acquisition.
- Operating Income Increase: Wells Fargo projects that Google's operating income will rise by 6% and 14% over the next two years, indicating a significant enhancement in the company's profitability within the cloud computing sector.
- High-Margin Licensing Revenue: The analysis highlights that Broadcom's orders for 1GW and 3GW TPUs to Anthropic will generate $2.5 billion in 2026 and $7.5 billion in 2027 in high-margin cloud revenue for Google, with a licensing fee of $2,500 per TPU.
- Earnings Estimates Raised: Wells Fargo has raised its earnings per share estimate for Google from $11.85 to $11.92 for 2026 and from $14.07 to $14.42 for 2027, reflecting increased confidence in the company's future performance.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
Current: 294.900
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, driven by its custom chips that enhance cost performance for AI applications, attracting numerous developers.
- Capital Expenditure Concerns: Alphabet plans to allocate $175 billion to $185 billion for data center construction by 2026, raising investor concerns about ROI; however, the company argues that engaging in AI technology is essential, potentially yielding long-term benefits.
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