Amazon (AMZN) investor relations material

Executive summary

• Q2 2026 net sales reached $200.6 billion, up 20% year-over-year, with operating income of $27.5 billion, up 43% year-over-year.

• Net income surged 245% year-over-year to $62.6 billion, driven by a $53.4 billion non-operating gain from investments in Anthropic.

• AWS annualized revenue run rate hit $169 billion, with 36.7% year-over-year growth, marking its fastest acceleration in 18 quarters.

• AI and chips businesses both exceeded $25 billion annualized run rates, each growing triple digits year-over-year.

• Strong performance in Stores, Ads, and Entertainment, with notable growth in Prime, grocery, pharmacy, and record advertising and delivery services.

Financial highlights

• Trailing twelve-month net sales were $775.7 billion, up 16% year-over-year (15% FX adjusted).

• TTM operating income was $93.7 billion, up 23% year-over-year.

• Free cash flow for TTM was $(7.6) billion, down 142% year-over-year, due to a $66.1 billion increase in property and equipment investments, mainly for AI.

• Operating income benefited from $1.2 billion in non-recurring items: $600 million in tariff-related refunds and $600 million from energy contract derivative gains.

• Operating cash flow for the trailing twelve months increased 33% to $161.4 billion.

Outlook and guidance

• Q3 2026 net sales expected between $197 billion and $202 billion, with sequential deceleration due to Prime Day timing and FX headwinds.

• Q3 operating income guidance: $22.5 billion to $26.5 billion.

• CapEx guidance for 2026 raised to $220 billion, mainly due to higher memory costs; demand expected to outpace capacity through 2027.

• Guidance assumes no major acquisitions, restructurings, or legal settlements.