Amazon reported record second-quarter earnings for 2026, with revenue reaching $200.6 billion, a 20% year-over-year increase, driven by Amazon Web Services (AWS) growth that hit its fastest pace in 18 quarters. AWS revenue climbed 36.7% to $42.2 billion, helping operating income rise 43% to $27.5 billion, as the company’s stock jumped more than 10% in extended trading. CEO Andy Jassy stated AWS is booming, growing 36.7% year-over-year in Q2, and noted the business could very possibly be a trillion-dollar annual revenue business for us in time. Capital expenditures for 2026 were raised to $220 billion as AI infrastructure demand surges, though Jassy cautioned Amazon will not have enough capacity to meet all the demand we have in 2026.
Amazon stock earnings for the second quarter of 2026 beat expectations across the board, as stated in the company’s quarterly results. Revenue landed at $200.6 billion, up 20% year over year, with AWS growth hitting its fastest pace in 18 quarters. The Amazon stock price is still digesting how strong AWS looked.
AWS revenue climbed 36.7% year over year to $42.2 billion, driving the Amazon stock earnings reaction on Wall Street. Operating income rose 43% to $27.5 billion, and AWS operating margin expanded to 39%, up 650 basis points from a year earlier. North America revenue rose 16% to $116.2 billion, and international sales climbed 15% to $42.2 billion on a currency neutral basis.
CEO Andy Jassy put it plainly in the earnings release: AWS is booming, growing 36.7% year-over-year in Q2. AI and chips businesses each topped a $25 billion annual run rate. Advertising revenue grew 26% to $19.8 billion, and grocery sales expanded into 2,300 U.S. cities.
On the earnings call, Jassy told analysts AWS could be very possibly be a trillion-dollar annual revenue business for us in time. Amazon confirmed 2026 capital expenditures will hit $220 billion, up from an earlier $200 billion estimate, as memory chip costs climbed. Jassy cautioned that Amazon will not have enough capacity to meet all the demand we have in 2026, and that the same capacity crunch is likely to carry into 2027.
Third quarter guidance calls for net sales between $197 billion and $202 billion, below analyst expectations partly because Prime Day shifted into the second quarter. Foreign exchange is expected to trim roughly 80 basis points off Q3 revenue growth. The Amazon stock price jumped more than 10% in extended trading after the report.
