Summary

• Alphabet’s revenue growth has accelerated for five consecutive quarters. Except for Google Network business, which is increasingly irrelevant, every part of the Alphabet business is humming right now.
• Despite growing at an incredible ~19% in 1Q’26, Google Search still continued to lose share in the digital advertising industry.
• Google Services operating margin reached a new peak at 45.3%. Given that incremental margins continue to be 60%+, I wouldn’t be surprised if margins continue to expand here.
• Paid clicks grew at 13% in 1Q’26, which was the highest since 1Q’22.

Alphabet’s (GOOG) (GOOGL) revenue growth has accelerated for five consecutive quarters. Except for Google Network business, which is increasingly irrelevant, every part of the Alphabet business is humming right now.

As mentioned yesterday, despite growing at an

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