Amazon Crushes Q2: $200.6B Sales, AWS Up 37%, Guides Above Street
AMZN sits 29% above its 52-week low of $196 on elevated volume (1.9× avg).
Summary
Amazon reported Q2 2026 results that blew past expectations, with AWS growth accelerating to 37% and net income more than tripling, while issuing Q3 guidance above consensus.
Key Events · Earnings and Guidance · AMZN
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Q2 Revenue and Earnings Smash Estimates
Net sales hit $200.6B (20% YoY), beating the $196.47B consensus. Diluted EPS of $5.75 crushed estimates, driven by a $53.4B non-cash gain from Anthropic investments and strong operating performance.
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AWS Growth Accelerates to 37%
AWS segment sales reached $42.2B, a 37% YoY increase — its fastest growth in 18 quarters — reaching a $169B annualized revenue run rate. AI and chips businesses each surpassed $25B run rates, growing triple digits.
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Operating Income Surges 43%
Operating income rose to $27.5B, with AWS contributing $16.6B (64% YoY growth). North America and International segments also posted solid gains, driving consolidated operating margin to 13.7%.
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Q3 Guidance Tops Expectations
Amazon guided Q3 net sales to $197.0B–$202.0B (9%–12% YoY growth) and operating income to $22.5B–$26.5B, both above Street forecasts, signaling confidence in sustained momentum.
Analysis · AMZN · Trade & Services
Amazon delivered a massive Q2 beat, with net sales of $200.6 billion surpassing the $196.47 billion consensus and adjusted EPS of $5.75 trouncing estimates. AWS stole the show — 37% year-over-year growth to a $169 billion annualized run rate, its fastest in 18 quarters, with AI and chips businesses each exceeding $25 billion run rates. Operating income jumped 43% to $27.5 billion, and net income more than tripled to $62.6 billion, boosted by a $53.4 billion non-cash gain from Anthropic investments. Q3 guidance of $197–$202 billion in sales and $22.5–$26.5 billion in operating income came in above Street expectations, signaling continued momentum. The only blemish: free cash flow swung to a $7.6 billion TTM outflow as capex surged $66.1 billion year-over-year to fund AI infrastructure — a necessary investment that the market is rewarding given the growth payoff.
At the time of this filing, AMZN was trading at $252.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.5T. The 52-week trading range was $196.00 to $278.56. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.