Amazon reported better-than-expected revenue and cloud growth for the second quarter. The stock shot up more than 9% in extended trading.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Earnings per share: $5.75 a share. That may not compare with the $1.82 per share expected by LSEG
- Revenue: $200.61 billion vs. $196.47 billion estimated
Wall Street was also looking at other key revenue numbers:
- Amazon Web Services: $42.2 billion vs. $40.54 billion expected, according to StreetAccount
- Advertising: $19.81 billion vs. $19.43 billion expected, according to StreetAccount
Revenue in Amazon’s cloud segment expanded 37% year over year during the quarter, surpassing Wall Street’s expectations for 31% growth. That marked the unit’s fastest growth since 2021, Amazon CEO Andy Jassy said in the earnings release.
Heading into the earnings report, investors were keenly focused on AWS growth after Amazon’s primary cloud rivals posted robust cloud results. Alphabet last week reported Google Cloud growth of 82%, while Microsoft‘s Azure cloud revenue rose 43% during the fiscal fourth quarter.
Jassy said AWS is “booming,” and pointed to the growth of its artificial intelligence and homegrown chips units, which both exceeded a $25 billion annual revenue run rate. Amazon has increasingly looked to highlight its in-house chips division, which includes the Trainium and Graviton brands, as a newer growth pillar for the company. Its AI products like the Bedrock model marketplace have primarily been targeted for enterprises.
For the current quarter, Amazon guided for revenue between $197 billion and $202 billion. Analysts polled by LSEG were expecting $204.1 billion.
The company blamed tough comparisons to last year’s third quarter as a result of its decision to shift this year’s Prime Day discount event up to June, instead of its typical July timeframe. Excluding the impact of this year and last year’s Prime Day, third-quarter 2026 growth “would be nearly 400 basis points higher,” Amazon said.
Amazon doesn’t disclose Prime Day revenue, but U.S. sales across online retailers grew 9% to $26.4 billion during the weeklong event. Prime Day helped lift Amazon’s North America revenue 16% year over year to $116.2 billion during the second quarter.
Operating income in the third quarter is expected to be in the range of $22.5 billion to $26.5 billion, while analysts polled by StreetAccount forecast $24.92 billion.
Net income for the second quarter was $62.6 billion, or $5.75 per share, compared with $18.2 billion, or $1.68 per share, a year earlier. The company said this includes pre-tax income of $53.4 billion, primarily from its investments in AI lab Anthropic.
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