Amazon Q2 profit surges as AWS growth accelerates

Amazon (AMZN) posted second-quarter 2026 net sales of $200.6 billion, a 20% increase from the same period in 2025. Operating income rose to $27.5 billion from $19.2 billion a year earlier, reflecting improved profitability across the business. Net income was $62.647 billion, translating to earnings of $5.75 per diluted share. The quarter’s net income included $53.4 billion in pre-tax non-operating income primarily related to Amazon’s (AMZN) investment in Anthropic.

North America segment net sales reached $116.177 billion, up 16% year over year, while International segment net sales were $42.197 billion, up 15%. These results indicate continued growth in Amazon’s retail operations in both domestic and overseas markets. Advertising services also contributed to the top line, with revenue of $19.81 billion, an increase of 26% from the prior-year quarter.

Amazon Web Services was a major growth engine in the quarter. AWS revenue rose 37% year over year to $42.232 billion, marking strong acceleration in the cloud computing unit. AWS operating income reached $16.621 billion, delivering an operating margin of 39.4%. This performance underscored the profitability of Amazon’s cloud business within the overall company.

Management highlighted the strength of AWS, with the chief executive describing the unit as “booming.” Amazon said its artificial intelligence and custom-chip businesses have each surpassed a $25 billion annual revenue run rate. These activities sit within and alongside AWS, supporting demand for cloud infrastructure and related services.

Beyond cloud, Amazon’s retail and advertising businesses delivered solid growth that complemented AWS performance. North America and International segments both recorded double-digit percentage increases in net sales, reinforcing the breadth of the company’s revenue base. The 26% rise in advertising services to $19.81 billion showed sustained marketer demand on Amazon’s platforms.

The large non-operating gain tied primarily to the Anthropic investment significantly boosted net income for the quarter. While this item is separate from operating performance, it contributed to the sharp year-over-year increase in reported earnings. Together with higher operating income, it resulted in substantially higher profitability on a consolidated basis.

For the third quarter of 2026, Amazon projected net sales in a range of $197 billion to $202 billion. The company also guided operating income between $22.5 billion and $26.5 billion. This outlook suggests expectations for continued high revenue levels and strong operating profitability in the near term.

Amazon continues to invest in AI infrastructure, cloud services and custom chips, which it indicated are generating sizable annualized revenue contributions. The combination of expanding AWS margins, growing advertising revenue and steady retail growth frames the company’s strategic focus heading into the next quarter.