second quarter 2026
Filed Jul 30, 2026Net sales increased 20% year-over-year; operating income was $27.5 billion, up 43% year-over-year; AWS net sales increased 37%.
Net sales grew 20%, operating income increased to $27.5 billion from $19.2 billion, and AWS sales grew 37% to $42.2 billion. Reported net income also included $53.4 billion of non-operating pre-tax other income, primarily from investments in Anthropic.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $200.6 billion | – | 20% |
| Favorable impact from year-over-year changes in foreign exchange rates on net salesGAAP | $0.1 billion | – | – |
| Net sales growth excluding the favorable impact from year-over-year changes in foreign exchange ratesGAAP | 20% | – | 20% |
| Operating incomeGAAP | $27.5 billion | – | 43% |
| Net incomeGAAP | $62.6 billion | – | – |
| Diluted earnings per shareGAAP | $5.75 per diluted share | – | – |
| Non-operating pre-tax other incomeGAAP | $53.4 billion | – | – |
| North America segment operating incomeGAAP | $9.1 billion | – | – |
| International segment operating incomeGAAP | $1.7 billion | – | – |
| AWS segment operating incomeGAAP | $16.6 billion | – | – |
| Operating cash flow for the trailing twelve monthsGAAP | $161.4 billion | – | 33% |
| Free cash flow for the trailing twelve monthsother | an outflow of $7.6 billion | – | – |
| Year-over-year increase in purchases of property and equipment, net of proceeds from sales and incentivesGAAP | $66.1 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaNo segment-specific revenue driver was quantified in the supplied excerpt. | $116.2 billion | – | 16% |
| InternationalNo segment-specific revenue driver was quantified in the supplied excerpt. | $42.2 billion | – | 15% |
| AWSAWS’s AI business exceeded a $25 billion annual revenue run rate and grew triple-digit percentages year-over-year; its chips business also exceeded a $25 billion annual revenue run rate and grew triple-digit percentages year-over-year. | $42.2 billion | – | 37% |
What drove it
- AWS net sales increased 37% year-over-year to $42.2 billion, described as its fastest growth in 18 quarters.
- AWS’s AI business exceeded a $25 billion annual revenue run rate, growing triple-digit percentages year-over-year.
- Amazon’s chips business exceeded a $25 billion annual revenue run rate, growing triple-digit percentages year-over-year.
- Advertising had 26% year-over-year growth.
- Prime members received over 40% more items same-day or overnight in the first half of the year, while Grocery and Everyday Essentials grew meaningfully faster than the rest of the business.
- Amazon Now had over 80% growth in gross sales and units sold quarter-over-quarter and served over 60% more customers quarter-over-quarter.
- Amazon Business reached $60 billion in annualized gross sales.
Concerns
- Second-quarter 2026 net income included non-operating pre-tax other income of $53.4 billion, primarily from investments in Anthropic.
- Free cash flow was an outflow of $7.6 billion for the trailing twelve months, versus free cash flow inflow of $18.2 billion for the trailing twelve months ended June 30, 2025.
- The year-over-year increase of $66.1 billion in purchases of property and equipment, net of proceeds from sales and incentives, primarily reflected investments in artificial intelligence.
What to watch
- Whether AWS sustains its 37% year-over-year net sales growth and the stated annual revenue run rates above $25 billion for both its AI and chips businesses.
- The scale of purchases of property and equipment, net of proceeds from sales and incentives, and the effect on trailing-twelve-month free cash flow.
- The contribution of non-operating pre-tax other income from investments in Anthropic to reported net income.
- Management’s outlook, which was not included in the supplied filing excerpt.
Balance sheet and cash flow
- Operating cash flow increased 33% to $161.4 billion for the trailing twelve months, compared with $121.1 billion for the trailing twelve months ended June 30, 2025.
- Free cash flow decreased to an outflow of $7.6 billion for the trailing twelve months, compared with free cash flow inflow of $18.2 billion for the trailing twelve months ended June 30, 2025.
- Free cash flow was driven primarily by a year-over-year increase of $66.1 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence.
Analysis
Amazon reported broad top-line growth in the second quarter of 2026. Net sales increased 20% to $200.6 billion from $167.7 billion, with the company stating that growth was also 20% excluding the $0.1 billion favorable foreign-exchange impact. North America sales increased 16% to $116.2 billion, International sales increased 15% to $42.2 billion, and AWS sales increased 37% to $42.2 billion.
Operating performance strengthened. Operating income increased to $27.5 billion from $19.2 billion, while AWS segment operating income increased to $16.6 billion from $10.2 billion. North America segment operating income was $9.1 billion compared with $7.5 billion, and International segment operating income was $1.7 billion compared with $1.5 billion. AWS growth was supported by the company’s statement that both its AI business and chips business exceeded $25 billion annual revenue run rates and grew triple-digit percentages year-over-year.
Reported net income increased to $62.6 billion, or $5.75 per diluted share, from $18.2 billion, or $1.68 per diluted share. However, the release identifies $53.4 billion of non-operating pre-tax other income in the quarter, primarily from investments in Anthropic. This item is significant when assessing the relationship between reported net income and operating income.
Cash generation and investment moved in opposite directions over the trailing twelve months. Operating cash flow increased 33% to $161.4 billion from $121.1 billion, while free cash flow moved to an outflow of $7.6 billion from an inflow of $18.2 billion. Amazon attributed the free-cash-flow decline primarily to a $66.1 billion year-over-year increase in purchases of property and equipment, net of proceeds from sales and incentives, primarily reflecting artificial-intelligence investments. No forward guidance or capital-return information was included in the supplied excerpt.
Management, verbatim
AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion.
Andy Jassy, President and CEO, Amazon
In Stores, we again set record delivery speeds for Prime members in the first half of the year—over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business.
Andy Jassy, President and CEO, Amazon
And, Advertising had another strong quarter with 26% year-over-year growth.
Andy Jassy, President and CEO, Amazon
Not in the filing
stated, not guessed- Forward guidance for revenue, operating income, gross margin, operating expenses, tax rate, and other guided metrics was not included in the supplied filing excerpt.
- Previous-release outlook was not provided.
- Gross profit and gross margin were not included in the supplied filing excerpt.
- Operating expenses were not included in the supplied filing excerpt.
- Tax rate was not included in the supplied filing excerpt.
- Cash balance and debt were not included in the supplied filing excerpt.
- Share repurchases and dividends were not included in the supplied filing excerpt.
- Non-GAAP financial measures were not included in the supplied filing excerpt.
- Prior-quarter figures for reported metrics were not included in the supplied filing excerpt.
- The filing text was truncated and may omit additional reported financial metrics and disclosures.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.