Alphabet Posts Strong Q1 Earnings on Google Cloud Growth

Alphabet's Q1 2023 earnings have been released, showing a strong performance across various segments. The company posted EPS of $1.17, beating estimates by 10.38%, while revenue reached $69.8B, a 2.6% year-over-year growth and a 1.31% beat on expectations.

The standout performer was Google Cloud, which generated $7.45 billion in revenue, up 28% from the previous year. This marks the segment's first operating profit of $191 million, compared to a loss of $706 million in Q4 2022.

However, Alphabet also incurred restructuring charges totaling $2.56 billion due to workforce reductions and office space cuts, resulting in a compressed overall operating margin to 25% from 30% last year.