The AWS re-acceleration to 37% growth and 39.4% segment margins, combined with 20% total revenue growth and 13.7% operating margins, confirms Amazon's AI-driven growth narrative. The Q3 guidance implies ~10.5% revenue growth at midpoint, but adjusting for Prime Day timing (~400bps) suggests ~14.5% organic growth — a deceleration from Q2's 20% but still robust. The massive capex ($169B TTM) and negative FCF are the key watch items; the market is accepting this for AI infrastructure buildout, but any signs of slowing ROI on AI spend could pressure the stock. The $25B debt raise in July 2026 provides liquidity for continued investment.
Price Chart
Executive Summary
Amazon reported Q2 2026 results with net sales of $200.6B (+20% YoY), operating income of $27.5B (+43% YoY), and GAAP diluted EPS of $5.75. AWS revenue surged 37% YoY to $42.2B, its fastest growth in 18 quarters, while advertising grew 26%. The quarter included $53.4B in non-operating pre-tax other income from Anthropic investments. Guidance for Q3 2026 calls for net sales of $197-202B (9-12% growth, or ~400bps higher excluding Prime Day timing) and operating income of $22.5-26.5B. The massive EPS beat is largely non-operational, driven by the Anthropic gain, but core operating momentum is exceptionally strong across AWS, advertising, and retail segments, with accelerating revenue growth and expanding margins.
Key Financial Metrics
Key Facts
- Net sales of $200.6B, +20% YoY vs $167.7B
- Operating income of $27.5B, +43% YoY vs $19.2B
- GAAP diluted EPS of $5.75 vs $1.68 YoY (includes $53.4B non-operating Anthropic gain)
- AWS net sales of $42.2B, +37% YoY (fastest growth in 18 quarters)
- Advertising services revenue of $19.8B, +26% YoY
- North America segment sales +16% YoY to $116.2B; International +15% to $42.2B
- Q3 2026 guidance: net sales $197-202B (9-12% growth, ~400bps higher ex-Prime Day shift), operating income $22.5-26.5B
- TTM operating cash flow $161.4B (+33% YoY); TTM free cash flow -$7.6B outflow (vs +$18.2B inflow a year ago) due to $66.1B increase in capex for AI investments
- Long-term debt increased to $128.9B from $65.6B at Dec 2025, reflecting $25B debt offering in July 2026
Financial Impact
Revenue beat consensus by ~$4.2B (2.1%); GAAP EPS of $5.75 massively above $1.82 consensus but includes $53.4B non-operating gain; core operating income of $27.5B implies ~$2.53 operating EPS, a 39% beat vs $1.82 consensus
Risk Factors
- Free cash flow turned negative (-$7.6B TTM) as capex surged 64% YoY to $169B, primarily for AI infrastructure
- Q3 revenue guidance of 9-12% growth implies deceleration from Q2's 20%, though Prime Day timing shift accounts for ~400bps
- Long-term debt nearly doubled to $128.9B from $65.6B in six months following the $25B debt offering
- Net income includes $53.4B non-operating Anthropic gain — core operating earnings are much lower
- International segment operating margin remains thin at 4.1% vs North America's 7.9% and AWS's 39.4%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001018724-26-000024 |
| Document: amzn-20260730.htm | 0001018724-26-000024 |
| Document: amzn-20260630xex992.htm | 0001018724-26-000024 |
| Document: 0001018724-26-000024-index-headers.html | 0001018724-26-000024 |
| Document: 0001018724-26-000024-index.html | 0001018724-26-000024 |
| Document: 0001018724-26-000024.txt | 0001018724-26-000024 |
| 8-K Data (Synthetic) | 0001018724-26-000024 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | Court Ruling | $253.54 $258.45 | ▲ +1.94% | ▲ +1.83% | $252.64 (−0.35%) |
Sep 14, 2026 18d ago | 8-K | $253.54 $258.45 | ▲ +1.94% | ▲ +1.83% | $252.64 (−0.35%) |
Sep 11, 2026 20d ago | 424B5 | $253.54 $258.45 | ▲ +1.94% | ▲ +1.83% | $252.64 (−0.35%) |
Sep 11, 2026 21d ago | Court Ruling | $256.78 $253.71 | ▼ −1.20% | ▼ −0.97% | $252.64 (−1.61%) |
Sep 11, 2026 21d ago | Court Ruling | $256.78 $253.71 | ▼ −1.20% | ▼ −0.97% | $252.64 (−1.61%) |
Sep 9, 2026 23d ago | 424B5 | $252.40 $245.96 | ▼ −2.55% | ▼ −1.89% | $252.64 (+0.10%) |
Sep 9, 2026 23d ago | 8-K / 3 | $252.40 $245.96 | ▼ −2.55% | ▼ −1.89% | $252.64 (+0.10%) |
Sep 8, 2026 24d ago | Court Ruling | $256.97 $248.42 | ▼ −3.33% | ▼ −2.21% | $252.64 (−1.69%) |
Sep 8, 2026 24d ago | Court Ruling | $256.97 $248.42 | ▼ −3.33% | ▼ −2.21% | $252.64 (−1.69%) |
Sep 2, 2026 4w ago | Court Ruling | $254.98 $251.89 | ▼ −1.21% | ▼ −0.25% | $252.64 (−0.92%) |
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