Alphabet's (GOOGL) Q1 Revenue Grows 22%, Operating Margin at 36.1%

Alphabet's (GOOGL) operating margin reached 36.1% in Q1, its highest in five years, as revenue grew by 22% and operating income jumped 30%. Google Cloud revenue surged 63% to over $20 billion, while Search revenue rose 19%. Despite a hefty $35.7 billion spent on infrastructure last quarter, Wall Street expects quarterly capital expenditures to approach $44 billion. Maintaining a margin near 35% amidst rising costs will be important for Alphabet as it continues to invest heavily in AI capabilities, which could impact future profitability for investors.