AMZN 2026 Q2

AWS revenue growth accelerated to 36.7% year-over-year, the fifth consecutive quarter of acceleration and the fastest pace in 18 quarters, adding $4.6B sequentially, about 80% more than the largest prior increase.

“Revenue growth of 36.7% year-over-year, accelerating for the fifth straight quarter, our fastest growth in 18 quarters”— Andy Jassy, CEO

Management raised its long-term view of AWS's potential size, now believing it could be at least double the previously stated 'few hundred billion dollar' outlook, possibly reaching a trillion dollars in annual revenue over time.

“very possibly be a trillion-dollar annual revenue business for us in time”— Andy Jassy, CEO

Q3 guidance implies sequential deceleration in net sales growth versus Q2, driven mainly by Prime Day shifting entirely into Q2 this year and an FX headwind, though underlying stores trends are said to remain strong.

“third quarter 2026 year-over-year growth would have been nearly 400 basis points higher”— Brian Olsavsky, CFO

Management now expects the linkage between AI spend and core AWS consumption to strengthen further as more AI workloads move into full-scale production, a firming of a previously more tentative relationship.

“We expect this relationship to strengthen over time as more AI workloads move into full-scale production”— Brian Olsavsky, CFO

Amazon introduced a new FBA fuel and logistics surcharge in April, a new pricing lever not previously in place, to help offset elevated transportation costs.

“our FBA fuel and logistics surcharge that was implemented in April”— Brian Olsavsky, CFO

AWS backlog reached $496B, growing triple digits year-over-year, with demand visibility now extending meaningfully into 2028; capacity will not meet all demand in 2026 and 2027.

“Our backlog stands at $496 billion, growing triple digits year-over-year.”— Andy Jassy, CEO

Amazon Now ultra-fast delivery saw over 80% growth in gross sales and units sold quarter-over-quarter and served over 60% more customers quarter-over-quarter, an acceleration in adoption.

“over 80% growth in growth sales and units sold quarter-over-quarter”— Andy Jassy, CEO

AWS is now actively exploring selling Trainium chips directly to third-party data centers outside its own cloud, a new potential business model expanding beyond internal AWS use.

“I expect there's a real chance we'll do that in the future.”— Andy Jassy, CEO

Amazon's chips business and AI business each now exceed $25B in annualized revenue run rate, both growing triple-digit percentages year-over-year, with AI run rate climbing significantly quarter-over-quarter.

“Our chips business now has an annual revenue run rate of over $25 billion, growing triple-digit percentages year-over-year.”— Andy Jassy, CEO

Usage of the Kiro coding agent tripled quarter-over-quarter, a marked acceleration in adoption of Amazon's agentic coding service.

“tripled in usage quarter-over-quarter”— Andy Jassy, CEO

Engagement with Alexa for Shopping accelerated in Q2, with active users nearly doubling and interactions up over 5x year-over-year, a step-change from prior growth rates.

“engagement accelerated in Q2, with active users nearly doubling and interactions up over 5x year-over-year”— Andy Jassy, CEO

Graviton revenue commitments increased nearly three times quarter-over-quarter, and the newest Graviton5 generation is growing nearly twice as fast as Graviton4 did at the same stage.

“The revenue commitments have increased nearly three times quarter-over-quarter, and Graviton5 is growing nearly 2x faster as Graviton4 did.”— Andy Jassy, CEO

Amazon Pharmacy new customer growth more than doubled and same-day prescription deliveries grew nearly 5x in the first half of the year, with customer savings up over 400% year-over-year.

“grew the number of new customers for Amazon Pharmacy by more than 2x in the first 6 months of the year”— Andy Jassy, CEO

Same-day perishables offered through same-day facilities became a 'needle mover' that management says is changing the trajectory of the everyday essentials business, after years of prior experiments.

“changing the trajectory of our everyday essentials business”— Andy Jassy, CEO

AWS operating margin rose to 39%, up 650 basis points year-over-year (520 bps excluding a one-time derivative gain), which management attributed to disciplined efficiency gains and capacity optimization rather than randomness.

“AWS margins have continued to remain strong, and we're up 650 basis points year-over-year.”— Brian Olsavsky, CFO

Management now sees AI segment margins tracking the core AWS business's historical margin trajectory but running slightly ahead of that pace at the same stage of evolution.

“it's a little bit ahead of that pace that we saw”— Andy Jassy, CEO

A roughly $600M unrealized gain from fair-value changes on energy derivative contracts boosted AWS operating income this quarter, an item management flagged as unusual versus prior quarters.

“these adjustments have not been significant in prior quarters”— Brian Olsavsky, CFO

Transportation costs rose due to fuel inflation from the Middle East conflict and higher line-haul rates from driver capacity limitations, a new cost headwind partially offset by the new FBA surcharge.

“heightened transportation costs driven by fuel inflation from the conflict in the Middle East and higher line haul rates from driver capacity limitations”— Brian Olsavsky, CFO

Whole Foods Market's growth in its markets is now significantly outpacing comparable grocers, with its profit trajectory continuing to improve, a widening competitive gap versus peers.

“significantly outpacing the growth of comparable grocers”— Andy Jassy, CEO

Amazon raised its 2026 cash CapEx guidance to approximately $220B from the prior ~$200B estimate due to higher memory costs, and even at that level capacity will not meet all 2026-2027 demand.

“We now believe we will spend approximately $220 billion in cash CapEx in 2026.”— Andy Jassy, CEO

Amazon has begun issuing debt this year as a new financing source to help fund its AWS capacity build-out, with additional capital-raising options under active consideration.

“We have a lot of options available to us as we continue to fund this growth”— Andy Jassy, CEO

Management flagged that component prices, including memory, hard drives, and SSDs, are currently inflated industry-wide, a new supply-chain cost pressure that contributed to the higher CapEx outlook.

“there are inflated prices right now on some of the components like memory and hard drives and SSDs”— Andy Jassy, CEO

Amazon began receiving tariff-related refunds (~$600M in Q2) representing the bulk of expected refunds, a reversal from earlier quarters when it largely absorbed tariff costs without passing them to customers.

“represents the significant majority of refunds we expect to receive”— Brian Olsavsky, CFO