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, and net income surging 245% to $62.6 billion, driven by a $53.4 billion non-operating gain from Anthropic investments.

• 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 advertising segments.

• Amended the Five-Year Revolving Credit Agreement effective June 8, 2026, updating terms without altering core obligations.

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.

• North America segment revenue was $116.2 billion (+16% YoY); International segment revenue was $42.2 billion (+15% YoY, ex-FX); AWS segment revenue was $42.2 billion (+36.7% YoY), with operating income of $16.6 billion and a 39% margin.

• Cash CapEx in Q2 was $53.1 billion, primarily for AWS and generative AI.

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 for 2026 raised to $220 billion (from $200 billion) due to higher memory costs; demand expected to outpace capacity through 2027.

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