Amazon (AMZN) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales rose 10% year-over-year to $148 billion, with operating income up 91% to $14.7 billion and net income doubling to $13.5 billion, driven by AWS growth and strong demand for generative AI and custom silicon solutions.

• AWS segment led with 19% year-over-year sales growth to $26.3 billion and a $105 billion annualized run rate, supported by cloud migration and AI demand.

• Free cash flow for the trailing twelve months surged to $53.0 billion, up 664% year-over-year, and operating cash flow reached $108.0 billion.

• Prime Day was the largest ever, with global Prime members saving billions, and advertising revenue grew by over $2 billion year-over-year.

• Net income included a $0.4 billion pre-tax gain from Rivian investment.

Financial highlights

• Trailing twelve-month net sales were $604.3 billion, up 12% year-over-year, and operating income was $54.4 billion, up 207%.

• North America segment Q2 net sales were $90.0 billion, up 9%, with operating income of $5.1 billion; International segment net sales were $31.7 billion, up 7% (10% FX adjusted), with operating income of $273 million.

• AWS Q2 net sales were $26.3 billion, up 19% year-over-year, with operating income of $9.3 billion and a 35.5% margin.

• Operating cash flow for the trailing twelve months was $108.0 billion, up 75% year-over-year.

• Excluding a $1.0 billion FX headwind, Q2 net sales increased 11% year-over-year.

Outlook and guidance

• Q3 2024 net sales are expected between $154.0 billion and $158.5 billion, up 8–11% year-over-year, with a 90 basis point FX headwind.

• Q3 operating income is projected at $11.5 billion–$15.0 billion, up from $11.2 billion in Q3 2023.

• Capital investments are expected to be higher in the second half of 2024, mainly to support AWS infrastructure and generative AI demand.

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

• Macro trends of cautious consumer spending and trading down to lower ASP products are expected to persist into Q3.