Amazon's revenue exceeds $200 billion, AWS growth rate hits an 18-quarter high

Amazon released its Q2 2026 financial report. Quarterly revenue reached $200.6 billion, a year-on-year increase of 20%; operating profit was $27.5 billion, a year-on-year increase of 43%. Revenue exceeded market expectations. AWS revenue reached $42.2 billion, a year-on-year increase of 37%, marking the fastest growth in 18 quarters. The market had previously expected growth of about 31%. AWS operating profit grew 64% to $16.6 billion.

Amazon's net profit increased to $62.6 billion, but this included $53.4 billion in pre-tax investment income, mainly from the appreciation of its stake in Anthropic. Amazon also raised its capital expenditure plan for this year from $200 billion to $220 billion. Free cash flow over the past 12 months fell from positive $18.2 billion to negative $7.6 billion, mainly due to increased investments in AI-related equipment. After the financial report was released, Amazon's stock price rose nearly 9% in after-hours trading.