Amazon (AMZN) Q2 2026 earnings summary

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 revenue grew 37% year-over-year to $42.2 billion, marking its fastest growth in 18 quarters and reaching a $169 billion annualized run rate.

• Strong growth in AI and chips businesses, each surpassing $25 billion annualized run rates with triple-digit year-over-year growth.

• Advertising services revenue rose 26% year-over-year to $19.8 billion, with strong engagement in Prime Video ads and live sports.

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.

• North America segment revenue was $116.2 billion (up 16% year-over-year), and International segment revenue was $42.2 billion (up 15% year-over-year, ex-FX).

• Q2 operating income benefited from $1.2 billion in reduced expenses: $600 million in tariff-related refunds and $600 million from energy contract fair value adjustments.

Outlook and guidance

• Q3 2026 net sales expected between $197 billion and $202 billion, up 9–12% year-over-year.

• Q3 operating income guidance is $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.