News update on July 31: Amazon released its financial report for the second quarter of 2026. According to the report, Amazon’s total revenue in Q2 rose 20% year-on-year to $200.61 billion. Operating profit stood at $27.46 billion, a year-on-year increase of 43%. Net profit reached $62.647 billion, surging 245% year-on-year, with earnings per share at $5.75.
For the 12 months ending June 30 of this year, Amazon’s operating cash flow climbed 33% to $161.4 billion. Free cash flow dropped from $25.9 billion to $7.6 billion due to expenditures on property, plant and equipment.
By business segment, AWS cloud computing posted revenue of $42.2 billion, up 37% year-on-year, with operating profit jumping 62% year-on-year to $16.6 billion. This marked the segment’s fastest growth rate in 18 quarters, contributing roughly 61% of Amazon’s total operating profit. The advertising business delivered strong performance in the quarter, growing 26% year-on-year to $19.81 billion in quarterly revenue, beating market expectations. Net sales from physical brick-and-mortar stores hit $5.79 billion, flat compared with the same period last year.
On the retail front, Amazon CEO Andy Jassy stated that Prime delivery speeds have hit a new milestone: the number of products eligible for same-day or next-day delivery has risen by more than 40%.
In terms of regional markets, Amazon’s North American segment recorded sales of $116.2 billion, a 16% year-on-year increase, with operating profit of $9.1 billion, up 21.33% from $7.5 billion in the prior-year period. Its international business achieved sales of $42.2 billion (up 15% YoY) and operating profit of $1.7 billion, representing a 13.33% increase from $1.5 billion a year ago.
Amazon also highlighted other key highlights alongside the earnings release. The annual run rate of revenue for AWS’s artificial intelligence business and chip business each exceeded $25 billion, with both segments delivering triple-digit year-on-year growth rates. Amazon Now, the ultra-fast delivery service, continues its global expansion, covering 9 countries and more than 250 towns worldwide. Its quarterly sales surged over 80%, while quarterly order volume and the number of served customers both grew by over 60%. The newly integrated Alexa shopping platform nearly doubled its active user base in Q2, with user interactions growing more than fivefold year-on-year.
Regarding market outlook, Amazon projects third-quarter net sales to grow 9% to 12% year-on-year, ranging between $197 billion and $202 billion. Excluding adverse foreign exchange impacts, Q2 2026 year-on-year growth would be nearly 400 basis points higher. Operating income is forecast to land between $22.5 billion and $26.5 billion, a 52.3% year-on-year increase.