Amazon reported better-than-expected revenue and cloud growth for the second quarter. The stock shot up more than 9% in extended trading.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Earnings per share: $5.75 a share. That may not compare with the $1.82 per share expected by LSEG
- Revenue: $200.61 billion vs. $196.47 billion estimated
Wall Street was also looking at other key revenue numbers:
- Amazon Web Services: $42.2 billion vs. $40.54 billion expected, according to StreetAccount
- Advertising: $19.81 billion vs. $19.43 billion expected, according to StreetAccount
Revenue in Amazon’s cloud segment expanded 37% year over year during the quarter, surpassing Wall Street’s expectations for 31% growth. That marked the unit’s fastest growth in 18 quarters, Amazon CEO Andy Jassy said in the earnings release.
Jassy said AWS is “booming,” and pointed to the growth of its artificial intelligence and homegrown chips units, which both exceeded a $25 billion annual revenue run rate. Amazon has increasingly looked to highlight its in-house chips division, which includes the Trainium and Graviton brands, as a newer growth pillar for the company. Its AI products like the Bedrock model marketplace have primarily been targeted for enterprises.
For the current quarter, Amazon guided for revenue between $197 billion and $202 billion. Analysts polled by LSEG were expecting $204.1 billion.
The company blamed tough comparisons to last year’s third quarter as a result of its decision to shift this year’s Prime Day discount event up to June, instead of its typical July timeframe. Excluding the impact of this year and last year’s Prime Day, third-quarter 2026 growth “would be nearly 400 basis points higher,” Amazon said.
Prime Day helped lift its North America revenue 16% year over year to $116.2 billion.
Operating income in the third quarter is expected to be in the range of $22.5 billion to $26.5 billion, while analysts polled by StreetAccount forecast $24.92 billion.
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