Amazon's cloud business grew 37% as quarterly revenue topped $200 billion

Total net sales for the second quarter of 2026 reached $200.6 billion, up 20% from $167.7 billion a year earlier. Amazon Web Services revenue came in at $42.2 billion, giving the division an annualized revenue run rate of $169 billion. Operating income rose 43% to $27.5 billion, compared with $19.2 billion in the same period last year.

"AWS is booming, growing 36.7% year-over-year in Q2 ... and our AI and Chips businesses each eclipsed run rates of more than $25 billion," Amazon President and CEO Andy Jassy said in a statement. AWS operating income reached $16.6 billion in the quarter, up from $10.2 billion a year earlier, at an operating margin of 39.4%.

Net income for the quarter reached $62.6 billion, or $5.75 per diluted share, compared with $18.2 billion, or $1.68 per diluted share, in the second quarter of 2025. The company said Q2 net income included non-operating pre-tax income of $53.4 billion, primarily from its investments in Anthropic.

The Q2 revenue figure topped analyst expectations of $196.47 billion, and the AWS figure exceeded expectations of $40.54 billion, according to CNBC. Analysts had projected 31% growth for AWS, a figure the division handily beat.

Amazon's advertising services revenue grew 26% year over year to $19.8 billion. North America segment sales rose 16% to $116.2 billion, while international segment sales increased 15% to $42.2 billion.

Capital spending continued to climb, with property and equipment purchases on a trailing 12-month basis reaching $169 billion, up 64% year over year, driven by investments in AI infrastructure. Free cash flow on a trailing 12-month basis swung to an outflow of $7.6 billion from an inflow of $18.2 billion in the prior year period.

For the third quarter, Amazon guided for net sales of $197 billion to $202 billion, representing growth of 9% to 12%, and operating income of $22.5 billion to $26.5 billion. Shares climbed over 9% in after-hours trading following the release.