Amazon Revenue Reaches $200.6 Billion, AWS Growth Hits 18-Quarter High

Amazon released its Q2 2026 financial report, with quarterly revenue reaching $200.6 billion, a 20% year-over-year increase; operating profit was $27.5 billion, up 43% year-over-year. Revenue exceeded market expectations. AWS revenue reached $42.2 billion, a 37% year-over-year increase, marking the fastest growth in 18 quarters, while the market had expected growth of about 31%. AWS operating profit grew 64% to $16.6 billion. Amazon's net profit rose to $62.6 billion, which includes $53.4 billion in pre-tax investment gains, primarily from the appreciation of its stake in Anthropic. Amazon raised its capital expenditure plan for this year from $200 billion to $220 billion. Free cash flow over the past 12 months dropped from positive $18.2 billion to negative $7.6 billion, mainly due to increased investments in AI-related equipment. Following the earnings report, Amazon's stock price surged nearly 9% in after-hours trading.