A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Amazon delivered strong Q2 FY2026 results with net sales growing 19.6% YoY to $200.61B and operating income rising 43.2% to $27.46B, while Net Income reached $62.65B due to strong core performance and major valuation gains on AI investments.
Revenue
$200.61B
+19.62% YoY
EPS (Diluted)
$5.75
+242.26% YoY
Operating Income
$27.46B
+43.24% YoY
Filed · Source: SEC EDGAR 10-Q filing
Amazon (AMZN) reported Q2 FY2026 revenue of $200.61B, up 19.6% year over year. The company posted net income of $62.65B, up 244.9% from a year earlier, with diluted EPS of $5.75. Operating income was $27.46B, up 43.2% year over year. Operating cash flow was $45.39B, up 39.6% year over year. AMZN's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Amazon Q2 FY2026 revenue increased 19.6% YoY to $200.61B with AWS up 37%, driving net income to $62.65B alongside major strategic AI investments.
Last 4 quarters: 2 beats, 2 misses
Adjusted (non-GAAP) EPS of $1.88 versus the $1.94 analyst consensus — a -3.1% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $5.75.
AWS net sales increased 37% year-over-year to $42.23B in Q2 FY2026, compared to $30.87B in Q2 2025, driven by expanding customer usage and artificial intelligence workloads.
Source: 10-Q Item 2 MD&A, p.29
Amazon invested $13.7B in OpenAI's Series C Preferred Stock during Q2 2026 (bringing total 6M 2026 investment to $28.7B, with $21.3B remaining commitment funded post-quarter) and invested $10.0B in Anthropic nonvoting preferred stock.
Source: 10-Q Item 2 MD&A, p.27-28
Other non-operating income surged to $53.4B in Q2 FY2026, primarily reflecting upward valuation adjustments for observable price changes in Anthropic preferred stock, lifting consolidated Net Income to $62.65B.
Source: 10-Q Item 2 MD&A, p.33
Quarterly cash capital expenditures increased significantly to $53.1B in Q2 FY2026 from $31.4B in Q2 2025, primarily supporting technology infrastructure for AWS and AI expansion.
Source: 10-Q Item 2 MD&A, p.27
Operating in China and India exposes Amazon to foreign ownership limitations, data security laws, and potential tariff policy shifts. Non-compliance or legal re-interpretations could result in operational disruption, fines, or loss of licenses.
Source: 10-Q Item 1A, p.39-40
Substantial technology and data center investments required for artificial intelligence initiatives may strain liquidity and operational resources. If new AI capabilities fail to achieve expected adoption or profitability, Amazon may face future asset impairments.
Source: 10-Q Item 1A, p.38, 41-42
Managing large volumes of customer and enterprise data exposes Amazon to cyber threats, data loss, and expanding intellectual property disputes related to the deployment of proprietary and third-party AI models.
Source: 10-Q Item 1A, p.40, 43
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the AMZN earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $200.61B | $167.7B | +19.62% |
Cost of Revenue | $95.78B | $80.81B | +18.52% |
Operating Income | $27.46B | $19.17B | +43.24% |
Net Income | $62.65B | $18.16B | +244.90% |
EPS (Basic) | $5.82 | $1.71 | +240.35% |
EPS (Diluted) | $5.75 | $1.68 | +242.26% |
Amazon reported Q2 FY2026 revenue of $200.61B (+19.6% YoY) and operating income of $27.46B (+43.2% YoY). Net income surged to $62.65B, significantly influenced by $53.4B in pre-tax non-operating investment gains.
AWS net sales grew 37% year-over-year to $42.23B in Q2 FY2026, with segment operating income expanding to $16.62B due to strong enterprise cloud and AI adoption.
Net income was bolstered by $53.4B in pre-tax non-operating other income, primarily resulting from upward valuation adjustments for observable price changes in Anthropic nonvoting preferred stock.
Amazon incurred $53.1B in cash capital expenditures in Q2 FY2026, primarily for AWS infrastructure, while committing over $38B in equity investments in AI companies like OpenAI and Anthropic during the period.
Expected release date, analyst estimates & what to watch
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.
Amazon delivered a strong fiscal year 2025, with revenue growing 12.4% to $716.9B, net income surging 31.1% to $77.7B, and operating cash flow reaching $139.5B, reflecting broad-based profitability improvement across its business.
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