AI Takeaway
Amazon delivered a standout Q1 2026 with revenue of $181.5B (+16.6% YoY), operating income surging 29.6% to $23.9B, and net income jumping 37.7% to $90.8B, driven by expanding margins and strong cash generation.
Revenue
$181.52B
++16.61% YoY
EPS (Basic)
$2.82
++74.07% YoY
Operating Income
$23.85B
++29.60% YoY
Filed · Source: SEC EDGAR 10-Q filing
Amazon (AMZN) reported Q1 FY2026 revenue of $181.52B, up 16.6% year over year. The company posted net income of $30.25B, up 76.7% from a year earlier, with diluted EPS of $2.78.
Amazon's total revenue reached $181.5B in Q1 2026, up 16.6% YoY from $155.7B, reflecting continued momentum across its diversified business segments including e-commerce, advertising, and cloud services.
Source: 10-Q Financial Data, Income Statement
Operating margin improved to 13.1% from 11.8% in Q1 2025, with operating income growing 29.6% to $23.9B, indicating that revenue growth is outpacing cost increases and operational leverage is materializing.
Source: 10-Q Financial Data, Income Statement & Key Ratios
Net income surged 37.7% YoY to $90.8B, with diluted EPS rising 74.8% to $2.78 from $1.59, suggesting significant non-operating gains (e.g., investment revaluations) contributed meaningfully beyond core operating performance.
Source: 10-Q Financial Data, Income Statement
Operating cash flow grew 30.4% to $148.5B over the trailing period, while investing cash outflows expanded sharply to -$177.0B (vs. -$106.3B prior year), reflecting aggressive capital expenditure in infrastructure, likely AWS data centers and AI capacity.
Source: 10-Q Financial Data, Cash Flow Statement
Total assets grew 42.5% YoY to $916.6B, while long-term debt more than doubled (+108.7%) to $122.6B, and financing cash flows turned strongly positive at $62.5B, suggesting Amazon raised significant external capital to fund its investment program.
Source: 10-Q Financial Data, Balance Sheet & Cash Flow Statement
Long-term debt surged 108.7% YoY to $122.6B, and investing cash outflows reached -$177.0B, far exceeding operating cash flow of $148.5B. This capital intensity, likely tied to AI and cloud infrastructure buildout, increases financial leverage and execution risk if returns on investment are delayed.
Source: 10-Q Financial Data, Balance Sheet & Cash Flow Statement
The reported net margin of ~50% is extraordinarily high relative to Amazon's historical norms and its 13.1% operating margin, implying a large non-recurring or non-operating income item (e.g., unrealized investment gains). If such gains reverse or do not recur, reported net income could decline sharply in future quarters.
Source: 10-Q Financial Data, Income Statement & Key Ratios
Cost of revenue grew 13.6% YoY to $87.5B, and while this is below revenue growth of 16.6%, continued inflationary pressures in logistics, labor, and technology infrastructure could compress gross margins. Gross profit is approximately $94.1B, implying a gross margin of roughly 51.8%.
Source: 10-Q Financial Data, Income Statement
The current ratio stands at 1.18, which is relatively thin for a company of Amazon's scale, with current liabilities of $216.8B growing 23.0% YoY. While cash and equivalents of $101.8B provide a buffer, the pace of liability growth warrants monitoring.
Source: 10-Q Financial Data, Balance Sheet & Key Ratios
Amazon's global footprint exposes it to trade policy changes, tariffs, and regulatory scrutiny across multiple jurisdictions. Shifts in international trade dynamics could impact supply chain costs for its retail segment and data sovereignty requirements could affect AWS expansion.
Source: 10-Q Financial Data (inferred from business scale)
Reported EPS of $1.61 versus the $1.67 analyst consensus — a -3.6% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $181.52B | $155.67B | +16.61% |
Cost of Revenue | $87.46B | $76.98B | +13.62% |
Operating Income | $23.85B | $18.41B | +29.60% |
Net Income | $30.25B | $17.13B | +76.65% |
EPS (Basic) | $2.82 | $1.62 | +74.07% |
EPS (Diluted) | $2.78 | $1.59 | +74.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $916.63B | $643.26B | +42.50% |
Current Assets | $255.16B | $184.65B | +38.19% |
Current Liabilities | $216.76B | $176.17B | +23.04% |
Stockholders' Equity | $441.91B | $305.87B | +44.48% |
Cash & Equivalents | $101.82B | $66.21B | +53.78% |
Long-Term Debt | $122.63B | $58.75B | +108.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $26.03B | $17.02B | +52.99% |
Investing Cash Flow | $-64.21B | $-29.8B | -115.45% |
Financing Cash Flow | $52.77B | $-47M | +112370.21% |
D&A | $18.95B | $14.26B | +32.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 13.1% | 11.8% | +1.32% |
Net Margin | 16.7% | — | — |
ROE | 6.8% | — | — |
ROA | 3.3% | — | — |
Current Ratio | $1.177 | — | — |
Expected release date, analyst estimates & what to watch
Other companies in Broadline Retail
Amazon reported net income of $90.8B in Q1 2026, up 37.7% from $65.9B in Q1 2025. Diluted EPS came in at $2.78, a 74.8% increase from $1.59 in the prior year period.
Amazon's Q1 2026 highlights include revenue of $181.5B (+16.6% YoY), operating income of $23.9B (+29.6%), and operating margin expansion to 13.1%. The quarter also featured a dramatic surge in net income to $90.8B, likely boosted by non-operating investment gains, alongside aggressive capital investment with investing outflows of -$177.0B.
While operating income grew a strong 29.6% to $23.9B, net income of $90.8B was far higher than operating income, implying approximately $67B in non-operating income — likely unrealized gains on Amazon's equity investment portfolio (e.g., Rivian or other holdings). Investors should note this may not recur in future quarters.
Amazon's long-term debt more than doubled YoY, rising 108.7% to $122.6B, and investing cash outflows reached -$177.0B, exceeding operating cash flow of $148.5B. The company raised significant external financing ($62.5B in financing cash flows) to fund what appears to be a major infrastructure buildout, likely for AI and AWS data centers, which increases financial leverage.
Amazon's financial health appears broadly strong, with $101.8B in cash, a current ratio of 1.18, and operating cash flow of $148.5B. However, the rapid rise in long-term debt (+108.7% to $122.6B) and deeply negative free cash flow due to heavy capex are key areas to watch as the company bets heavily on AI infrastructure investment.