Amazon Revenues Jump 20 Percent to $200.6 Billion

Amazon reported that it earned a net income of $ billion on revenues of $200.6 billion in the quarter ending June 30, 2026. Those figures represent gains of 345 percent and 20 percent, respectively, year-over-year (YOY).

“AWS is booming, growing 36.7 percent year-over-year in Q2, our fastest growth in 18 quarters, and our AI and Chips businesses each eclipsed run rates of more than $25 billion,” Amazon president and CEO Andy Jassy said. “In Stores, we again set record delivery speeds for Prime members in the first half of the year [with] over 40 percent more items delivered same day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And Advertising had another strong quarter with 26 percent year-over-year growth. There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond.”

Amazon’s quarterly earnings are always a curious combination of inscrutable and mostly unrelated to the tech industry. But with Amazon racing to build out its AI infrastructure inline with competitors like Google and Microsoft, there’s a bit more to chew on here. And in addition to those blockbuster AWS earnings, Mr. Jaffey also revealed that Amazon now intends to spend over $220 billion on capital expenditures tied to AI. But that’s not an expansion of the plans, it just reflects the growing cost of RAM, he said.

“Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026,” Jaffey said in the post-earnings conference call. “I believe this dynamic will also be true in 2027 too.”

That said, Amazon’s free cash flow was negative in the quarter with the company falling behind by $7.6 billion; in the year-ago quarter, its free cash flow was $18.2 billion.