Does that mean that forgoing defense contracts mean Google won't profit? Probably not, but cloud services aren't just about profit.
Not based on losing the revenue generated directly by U.S. Customs and Border Protection contracts or any other government agency, but based on having icy/arms length relations with governments.
It's very important to them that governments dont see them as a problem and start looking at all the different ways to dismantle them and poke in to their business. Maintaining multifaceted relationships with them, having lots of different connections with lots of different departments, goes a long way to helping prevent that.