Amazon AWS Revenue Hits $42.23B, Up 37% in Fastest Growth in 18 Quarters

EarningsProduct / Tech Impact 4
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Summary · why it matters

Amazon Web Services posted $42.23 billion in revenue, growing 37% year over year, the segment's fastest growth in 18 quarters, with a 39.4% operating margin and a $496 billion contracted backlog. Amazon's chips and AI businesses each eclipsed run rates of more than $25 billion in the second quarter, both growing at triple-digit percentages year over year, while 98% of Amazon's top 1,000 EC2 customers use Graviton and Anthropic and OpenAI have made multi-year, multi-gigawatt commitments to Trainium. Q2 operating income landed at $27.46 billion, up 43.2% year over year, and advertising is a $70 billion-plus trailing-twelve-month business growing 26%. Capex reached $54.21 billion in a single quarter, up 68.4% year over year, and free cash flow swung to negative $7.6 billion on a trailing-twelve-month basis, though most AI capacity is contracted for at least five-year terms. Since Amazon reported Q2 on July 30, 2026, AMZN moved from $230.08 to $251.19, while SPY went from $747.03 to $762.70 and QQQ went from $687.99 to $716.92. Andy Jassy said AWS could become a few hundred billion dollar revenue business and now believes it will be at least double that and very possibly a trillion dollar annual revenue business in time.

Impact on stocks 1

Artificial Intelligence▲ · 1 stocks
Amazon.com Inc
AMZN
▲ PositiveCapitalDemandrelevance

AWS revenue grew 37% to $42.23B with 39.4% operating margin, Q2 operating income up 43.2%, and a $496B contracted backlog.

Theme Impact 11

Off-coverage companies 2

AnthropicPrivate▲ Positive
Demandrelevance

Anthropic made a multi-year, multi-gigawatt commitment to Amazon's Trainium chips.

OpenAIPrivate▲ Positive
Demandrelevance

OpenAI made a multi-year, multi-gigawatt commitment to Amazon's Trainium chips.

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