Q2 Earnings Release: AMZN

Jul 30

Amazon delivered another strong quarter, with revenue increasing 19.6% and operating income increasing 43%. AWS was once again the primary growth driver as customer demand for AI infrastructure and cloud services continued to increase. Net income reached $62.6B; however, most of the increase relates to Amazon's Anthropic investment rather than core operations.

Management Quote “"AWS is now a $169 billion annualized revenue run rate business, which, for perspective, would place it 24th on the Fortune 500 list if it was a standalone company."

Andy Jassy, President and CEO

Amazon.com, Inc. (AMZN) — Q2 FY2026 results | Aperture Insights

SEC Form 8-K · Reported results · Q2 2026

Amazon.com, Inc.AMZN

Aperture Insights · financial statement analysis · O. T. Nnamadim, CPA

Second quarter · three months ended June 30, 2026

Total net sales

$200.61B^*

Net income

$62.6B^*

PY $18.2B

Diluted EPS

$5.75^*

PY $1.68

Operating income

$27.5B^*

PY $19.2B · +43%

Operating margin

13.7%^*

PY 11.4%

AWS net sales

$42.2B^*

+37% YoY

Income statement summary

Reconciling total net sales to operating income, with the major income statement expense line items detailed by absolute dollar amount and relative share of revenue. A $53.4B non-operating gain (primarily the Anthropic investment) lifted net income to $62.6B; operating income better reflects core profitability.

Operating income$27.5B · +43% YoYNet income$62.6B · incl. $53.4B Anthropic gain

Cost of sales$95.8B47.7%

Fulfillment$29.6B14.8%

Technology & infrastructure$33.2B16.5%

Sales, marketing & admin$14.6B7.3%

Operating income$27.5B13.7%

Condensed consolidated statements of operations

Reported results against the prior-year period (June 30, 2025), with year-over-year dollar and percentage variance.

($ in billions unless noted)	June 30, 2026^* Actual	June 30, 2025 Prior year	Δ YoY $	Δ YoY %
Total net sales	200.6^*	167.7	+32.9	+19.6%
Operating expenses:
Cost of sales	95.8^*	80.8	+15.0	+18.5%
Fulfillment	29.6^*	26.0	+3.7	+14.1%
Technology and infrastructure	33.2^*	27.2	+6.0	+22.1%
Sales and marketing	11.7^*	11.4	+0.3	+2.5%
General and administrative	2.8^*	3.0	-0.2	-6.0%
Other operating expense (income), net	0.1^*	0.2	-0.1	-54.8%
Total operating expenses	173.1^*	148.5	+24.6	+16.6%
Operating income	27.5^*	19.2	+8.3	+43.2%
Total non-operating income, net	53.4^*	1.7	+51.7
Income before income taxes	80.9^*	20.9	+60.0	+287.7%
Provision for income taxes	18.2^*	2.7	+15.5	+579.6%
Net income	62.6^*	18.2	+44.5	+244.9%
Diluted EPS	5.75^*	1.68	+4.07	+242.3%

Net income includes $53.4B of non-operating other income, chiefly from Amazon’s investment in Anthropic; the year-over-year change in net income and the tax provision largely reflect that gain.

Segment & category revenue

Net sales by reportable segment (with segment operating income) and by revenue category. Growth tags are year-over-year.

Reportable segments · total $200.6B

North America

$116.2B

International

$42.2B

AWS

$42.2B

North America+16% YoY$116.2B^*57.9%

Operating income $9.1B · 7.9% segment margin

International+15% YoY$42.2B^*21.0%

Operating income $1.7B · 4.1% segment margin

Amazon Web Services (AWS)+37% YoY$42.2B^*21.1%

Operating income $16.6B · 39.4% segment margin

Revenue by category · total $200.6B

Online stores+15% YoY$70.4B^*35.1%

Third-party seller services+16% YoY$46.8B^*23.3%

Amazon Web Services (AWS)+37% YoY$42.2B^*21.1%

Advertising services+26% YoY$19.8B^*9.9%

Subscription services+12% YoY$13.7B^*6.8%

Physical stores+4% YoY$5.8B^*2.9%

Other+22% YoY$1.8B^*0.9%

Ten-quarter trend

Total net sales by quarter (full bar), with net income shown as the highlighted portion of each bar — so both the top line and the profit within it are visible across the last ten quarters.

143.3

Q1 ’24

148.0

Q2 ’24

158.9

Q3 ’24

187.8

Q4 ’24

155.7

Q1 ’25

167.7

Q2 ’25

180.2

Q3 ’25

213.4

Q4 ’25

181.5

Q1 ’26

200.6

Q2 ’26^*

Net income Rest of net sales Latest quarter (8-K)

Latest quarter reported from the 8-K. Q2 FY2026 net income of $62.6B includes a $53.4B non-operating gain (primarily the Anthropic investment), so its highlighted share overstates operating profitability; operating income was $27.5B (13.7% margin).

Ozoemena Nnamadim