Amazon Crushes Q2 Estimates With $200B Revenue And Massive AI Spending Spree

Amazon.com, Inc. reported second-quarter financial results for 2026, surpassing Wall Street expectations across key metrics. The Seattle-based e-commerce and cloud computing giant announced total net sales of $200.6 billion, representing a 20 percent increase compared to the same period in 2025. Operating income climbed 43 percent year-over-year to $27.5 billion, up from $19.2 billion in the previous year. Net income and profit margins expanded as efficiency gains offset surging infrastructure expenditures. Amazon Web Services, the company’s cloud computing division, served as a primary growth driver. AWS segment net sales reached $42.2 billion, marking a 36.7 percent year-over-year increase and achieving its fastest growth rate in 18 quarters. AWS operating income rose to $16.6 billion, while operating margins expanded to 39 percent. The division's annualized revenue run rate hit $169 billion, backed by triple-digit growth in its customer backlog. The North America segment generated $116.2 billion in sales, a 16 percent increase from the prior year, with an operating income of $9.1 billion. The International segment recorded $42.2 billion in sales, up 15 percent, with $1.7 billion in operating income. Meanwhile, Amazon’s advertising business grew 26 percent year-over-year to reach $19.8 billion in revenue. Driven by accelerating enterprise demand for artificial intelligence workloads, Amazon management revised its capital expenditure outlook upward. The company announced it expects total capital spending for fiscal year 2026 to reach approximately $220 billion, directed heavily toward expanding data centers, server capacity, and proprietary chip development to support AI infrastructure. During the quarter, property and equipment expenditures totaled $53 billion. CEO Andy Jassy and CFO Brian Olsavsky addressed investors during the earnings call, highlighting widespread adoption of artificial intelligence tools across AWS, including foundation models on Bedrock