Amazon (AMZN) investor relations material

Executive summary

• Net sales rose 17% year-over-year to $181.5 billion in Q1 2026, with strong growth across all segments and major investments in AI, chips, and cloud infrastructure.

• Operating income increased to $23.9 billion, up 30% year-over-year, with a record 13.1% operating margin.

• Net income surged to $30.3 billion, up 77% year-over-year, driven by core operations and a $16.8 billion pre-tax gain from Anthropic investments.

• Major investments and commercial arrangements were made with Anthropic and OpenAI, including equity, cloud service, and chip commitments.

• Guidance for Q2 2026 anticipates net sales growth of 16–19% and operating income between $20.0–$24.0 billion.

Financial highlights

• Net sales: $181.5 billion, up 17% year-over-year; AWS sales up 28%, International up 19%, North America up 12%.

• Operating income: $23.9 billion, up from $18.4 billion year-over-year; operating margin reached 13.1%.

• Net income: $30.3 billion, compared to $17.1 billion in Q1 2025.

• Free cash flow for the trailing twelve months: $1.2 billion, down 95% year-over-year, due to increased property and equipment purchases for AI investments.

• Diluted EPS: $2.78, up from $1.59 year-over-year.

Outlook and guidance

• Q2 2026 net sales expected between $194.0–$199.0 billion, up 16–19% year-over-year.

• Q2 2026 operating income projected at $20.0–$24.0 billion, including higher stock-based compensation and increased costs for satellite and transportation.

• Guidance assumes Prime Day occurs in Q2 2026 and no major acquisitions, restructurings, or legal settlements.