Amazon posted Q2 2026 net sales of $200.6 billion, a 20% year-over-year increase that marked the first time the company surpassed $200 billion in a single quarter. Amazon Web Services drove a significant share of the acceleration, delivering $42.2 billion in revenue at a 37% growth rate, the fastest AWS expansion in 18 quarters. Operating income rose 43% to $27.5 billion, while net income reached $62.6 billion, a figure heavily influenced by $53.4 billion in non-operating gains tied primarily to Amazon’s investment in Anthropic. The results, released through Amazon’s Investor Relations on July 30, presented a company whose cloud and AI businesses are accelerating even as the retail segments grow at a more measured pace.
- Total net sales reached $200.6 billion, up 20% from $167.7 billion in Q2 2025; North America grew 16% to $116.2 billion, International grew 15% to $42.2 billion, and AWS grew 37% to $42.2 billion
- Operating income increased 43% to $27.5 billion, with AWS contributing $16.6 billion at a 39.4% operating margin, up from $10.2 billion and 32.9% a year earlier
- Net income surged to $62.6 billion ($5.75/diluted share), compared with $18.2 billion ($1.68/diluted share) in Q2 2025; non-operating income of $53.4 billion was driven primarily by the Anthropic investment
- Property and equipment purchases reached $54.2 billion in Q2 alone, bringing trailing twelve-month capital expenditures to $169 billion, up 64% year-over-year
- Q3 2026 guidance calls for net sales of $197-$202 billion (9%-12% growth) and operating income of $22.5-$26.5 billion
AWS and the AI Infrastructure Buildout
AWS accounted for 21% of Amazon’s total revenue in Q2, up from 18% a year earlier, reflecting the segment’s disproportionate growth rate relative to the broader business. The $42.2 billion in AWS quarterly revenue translates to an annualized run rate of $169 billion. CEO Andy Jassy highlighted the scale of the AI business within AWS, noting that both the AI and chips divisions individually eclipsed $25 billion annualized run rates with triple-digit year-over-year growth.
AWS operating income reached $16.6 billion in Q2, up from $10.2 billion in the same period last year, with operating margin expanding to 39.4% from 32.9%. The margin improvement came despite the heavy capital investment cycle, suggesting that the revenue mix within AWS is shifting toward higher-margin AI workloads and that capacity utilization is improving as new data center infrastructure comes online. The segment’s revenue backlog reached $496 billion, growing at triple-digit rates, a figure that represents contracts Amazon has signed but not yet fulfilled.
The capital expenditure numbers underscore the scale of the infrastructure commitment. Amazon spent $54.2 billion on property and equipment in Q2 alone (gross of $1.1 billion in proceeds from sales and incentives). On a trailing twelve-month basis, capital expenditures reached $169 billion, up 64% year-over-year, driven almost entirely by AI-related investments in data centers, custom silicon, and networking infrastructure. Free cash flow swung to a negative $7.6 billion outflow on a trailing twelve-month basis, compared with a positive $18.2 billion inflow a year earlier, reflecting the pace at which capital spending is outrunning operating cash flow growth.
Retail Segments and the Prime Day Timing Effect
North America segment sales grew 16% to $116.2 billion, with operating income rising to $9.1 billion at a 7.9% operating margin. International sales increased 15% to $42.2 billion, with operating income of $1.7 billion at a 4.1% margin. Both segments showed steady improvement, though neither matched the velocity of the AWS growth trajectory.
Within the retail business, online stores revenue grew 15% to $70.4 billion, third-party seller services rose 16% to $46.8 billion, and advertising services increased 26% to $19.8 billion. Subscription services, which include Amazon Prime memberships, grew 12% to $13.7 billion. Worldwide paid units increased 17% year-over-year, and worldwide shipping costs rose 19% to $27.9 billion, reflecting the continued expansion of same-day and overnight delivery.
Jassy emphasized the delivery speed improvements in his statement accompanying the results. Amazon delivered over 40% more items same-day or overnight to Prime members in the first half of 2026 compared with the prior year, with Grocery and Everyday Essentials growing faster than the rest of the retail business. The company also launched Amazon Supply Chain Services, opening its logistics infrastructure to external businesses, with Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters among the first customers.
Net Income and the Anthropic Investment Gain
The headline net income figure of $62.6 billion requires context. Of that total, $53.4 billion came from non-operating pre-tax other income, which Amazon attributed primarily to its investments in Anthropic. Stripping out that gain, the underlying operating performance shows $27.5 billion in operating income, the more relevant figure for assessing the company’s recurring business profitability. Operating cash flow grew 33% on a trailing twelve-month basis to $161.4 billion.
The Anthropic-driven gain reflects the accounting treatment of Amazon’s equity stake in the AI company, which fluctuates with Anthropic’s valuation. These gains are unrealized and non-cash in nature, meaning they inflate reported net income without generating actual cash flow. For investors evaluating Amazon’s operating performance, the $27.5 billion operating income figure and the $161.4 billion trailing twelve-month operating cash flow provide a cleaner picture of the business’s earning power.
Income tax provisions also shifted substantially as a result. Amazon’s provision for income taxes rose to $18.2 billion in Q2, compared with $2.7 billion in Q2 2025, largely reflecting the deferred tax implications of the investment gains.
Q3 Guidance and the Prime Day Calendar Shift
Amazon guided Q3 2026 net sales to a range of $197 billion to $202 billion, implying 9% to 12% year-over-year growth. The company noted that the guidance reflects the timing shift of Prime Day from its traditional July window into June this year. Excluding the impact of Prime Day in both years, Amazon’s earnings release stated that third-quarter growth “would be nearly 400 basis points higher.” The company also guided Q3 operating income to $22.5-$26.5 billion, up from $17.4 billion in Q3 2025.
The guidance also flagged several risk factors, including fluctuations in energy prices and memory chip supply, tariff and trade policies, and regional labor market constraints. Amazon specifically called out “resource and supply volatility, including for memory chips” as a factor that could materially affect results, a reference to the tightening semiconductor supply chain that has driven up costs for AI infrastructure across the industry.
Amazon’s headcount stood at 1,595,000 full-time and part-time employees at the end of Q2, up 3% year-over-year. Total assets reached $1.096 trillion, crossing the $1 trillion mark for the first time, driven largely by the growth in property and equipment ($446 billion, up from $357 billion at year-end 2025) and other assets ($284 billion, up from $123 billion, reflecting the Anthropic investment valuation).
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or trading advice. Net Worth does not recommend the purchase or sale of any securities. Readers should consult a qualified financial advisor before making investment decisions.
FAQs
What was Amazon’s Q2 2026 revenue?
Amazon reported total net sales of $200.6 billion for the second quarter of 2026, a 20% increase from $167.7 billion in Q2 2025. This marked the first time Amazon exceeded $200 billion in quarterly revenue.
How fast did AWS grow in Q2 2026?
AWS revenue increased 37% year-over-year to $42.2 billion, the segment’s fastest growth rate in 18 quarters. AWS operating income rose to $16.6 billion with a 39.4% operating margin.
Why was Amazon’s net income so high in Q2 2026?
Net income of $62.6 billion included $53.4 billion in non-operating pre-tax income, primarily from unrealized gains on Amazon’s investment in Anthropic. Operating income, which excludes investment gains, was $27.5 billion.
What is Amazon’s Q3 2026 revenue guidance?
Amazon guided Q3 2026 net sales to $197-$202 billion, or 9%-12% year-over-year growth. The company noted that excluding the impact of Prime Day’s shift from July to June, growth would be nearly 400 basis points higher.
