AWS Growth Driven by Customer Usage
AWS sales increased 37% in Q2 2026, primarily due to increased customer usage, partially offset by pricing changes from long-term customer contracts.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Amazon's Q2 FY2026 results were defined by accelerating AWS growth and a huge net income surge driven by non-operating gains. AWS revenue grew 37%, its fastest clip in years, while North America and International also posted double-digit sales increases as unit sales, advertising, and subscriptions expanded. Operating income rose 43% on improved efficiency, but free cash flow turned negative to $(7.6)B for the trailing twelve months as capital expenditures soared to support AI and cloud infrastructure. Reported net income of $62.6B was heavily influenced by $53.4B in other income from upward adjustments to the company's Anthropic investment, making the bottom line unrepresentative of ongoing profitability.
Revenue
$200.61B
+19.62% YoY
EPS (Diluted)
$5.75
+242.26% YoY
Operating Income
$27.46B
+43.24% YoY
Source: SEC XBRL
Amazon (AMZN) reported Q2 FY2026 revenue of $200.61B, up 19.6% year over year. Operating margin was 13.7%, up 2.3 points from 11.4% a year earlier. Operating cash flow was $45.39B, up 39.6% year over year. AMZN's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.97 | 1.86 | Beat +6.2% |
| Jun 2026This filing | 1.88 | 1.94 | Miss -3.1% |
| Dec 2025 | 1.61 | 1.67 | Miss -3.6% |
| Sep 2025 | 1.95 | 1.60 | Beat +21.5% |
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.
3 reported segments · SEC XBRL
Segment revenue totals $200.61B, which is the $200.61B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as operating income, the measure AMZN itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
AWS sales increased 37% in Q2 2026, primarily due to increased customer usage, partially offset by pricing changes from long-term customer contracts.
Source: 10-Q Item 2 MD&A
Cost of sales in Q2 2026 includes tariff refunds received under the IEEPA, which provided some relief from higher product and shipping costs.
Source: 10-Q Item 2 MD&A
Amazon invested $13.7B in OpenAI's Series C Preferred Stock and $10.0B in Anthropic nonvoting preferred stock during Q2 2026, underscoring its commitment to AI.
Source: 10-Q Item 2 MD&A
Trailing twelve-month free cash flow was $(7.6)B, as cash capital expenditures reached $96.3B in the first half of 2026, primarily for AWS technology infrastructure.
Source: 10-Q Item 2 MD&A
Management stated that capital expenditures are expected to increase further in 2026, with continued investments in artificial intelligence initiatives.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Amazon faces intense competition across retail, cloud services, and advertising from companies with greater resources and rapid technological change. This could require increased spending or lower prices, reducing sales and profits.
Source: 10-Q Item 1A Risk Factors
International operations expose Amazon to trade protection, tariffs, and regulatory hurdles, particularly in China and India. Restrictions on Chinese sellers or suppliers could disrupt significant portions of its third-party marketplace and supply chain.
Source: 10-Q Item 1A Risk Factors
Failure to accurately predict demand or efficiently operate its fulfillment network and data centers could lead to excess capacity, service interruptions, or increased costs, especially as operations become more complex.
Source: 10-Q Item 1A Risk Factors
The collection and processing of large amounts of data create significant data security risks. Breaches or failures involving sensitive information could result in liability, regulatory action, and reputational damage.
Source: 10-Q Item 1A Risk Factors
Fluctuations in foreign exchange rates can materially affect reported results, as international sales and operations generate revenues and costs in multiple currencies. A stronger U.S. dollar could make translated results lower than expected.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 200.61 $B | 167.70 $B | +19.62% |
Cost of Revenue $B | 95.78 $B | 80.81 $B | +18.52% |
Operating Income $B | 27.46 $B | 19.17 $B | +43.24% |
Net Income $B | 62.65 $B | 18.16 $B | +244.90% |
EPS (Basic) $ | 5.82 $ | 1.71 $ | +240.35% |
EPS (Diluted) $ | 5.75 $ | 1.68 $ | +242.26% |
Answers draw on this SEC filing and the data on this page
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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