Amazon, 2026 Q2 Earnings Results

01 Revenue, operating income and results versus expectations

Year over year · revenue 167.702 → 200.606 B$ (+19.6% · +32.904 B$), operating income 19.171 → 27.461 B$ (+43.2% · +8.290 B$).

Quarter over quarter · revenue 181.519 → 200.606 B$ (+10.5% · +19.087 B$), operating income 23.852 → 27.461 B$ (+15.1% · +3.609 B$), operating margin 13.1% → 13.7% (+0.5%p).

AWS revenue grew by 11.359 B$ year over year, and AWS operating income rose from 10.160 → 16.621 B$. North America and International retail operating income also increased, from 7.517 → 9.123 B$ and 1.494 → 1.717 B$, respectively, so earnings improvement was not confined to one business.

02 Earnings sustainability · From operating income to net income

Net income of 62.647 B$ includes non-operating other income of 53.381 B$, mainly from the Anthropic investment. Equity valuation gains are separate from operating income and should not be treated as recurring next-quarter revenue or cash inflows.

AWS accounted for a larger share of revenue, and growth in its operating income drove the overall earnings improvement. Retail performance also requires consideration of Prime Day’s shift between quarters.

Operating income

27.461 B$

Net non-operating income

53.396 B$

Income tax expense

−18.199 B$

After-tax equity-method income/loss

−0.011 B$

Consolidated net income

62.647 B$

Net income of 62.647 B$ in the existing quarterly dataset is on a consolidated basis.

03 Cash flow quality · Net income → OCF → FCF

In calculating OCF, non-operating other income of 53.381 B$ was deducted, with adjustments including deferred income taxes of 17.691 B$, depreciation and amortization of 19.988 B$ and stock-based compensation of 6.038 B$. This quarter’s net income and cash generation cannot readily be judged using the same figure.

Net cash CapEx of 53.076 B$ is used, calculated by subtracting sale proceeds and incentives of 1.132 B$ from gross PP&E cash acquisitions of 54.208 B$. Finance lease principal payments of 0.395 B$ are additional cash outflows outside this FCF formula.

Consolidated net income

62.647 B$

Total net adjustments for noncash items, working capital and other items¹

−17.260 B$

Operating cash flow

45.387 B$

Cash CapEx

−53.076 B$

FCF

−7.689 B$

¹ Total net adjustments calculated as OCF−net income. This is not a single disclosed line item; it combines noncash items, working capital, classification differences and other adjustments.

FCF versus previous quarter · −17.202 → −7.689 B$, 9.513 B$ improvement.

04 Financial capacity · Net debt and payment obligations

Net debt worsened by 30.592 B$ from the previous quarter. The carrying amount of current debt is 3.655 B$. It may differ from the principal maturity schedule.

Quarterly proceeds from long-term borrowing of 13.557 B$ and repayments of 2.752 B$ are financing activities. Liquidity obtained through borrowing should not be interpreted as improved FCF.

Disclosed payments due in the second half of 2026 include debt principal and interest of 2.361 B$, operating leases of 9.336 B$ and finance leases of 1.088 B$. Even payment items covering the same period must be checked for overlap with CapEx plans, rather than mechanically added to investment plans.

Common definition · Cash and current investments = cash equivalents + current investments and deposits. Debt = carrying amount of interest-bearing borrowings (current + noncurrent), excluding separately reported lease liabilities. This differs from total liabilities of 544.069 B$. Restricted cash, noncurrent securities and noncurrent deposits are excluded from cash and current investments.

05 Investment, capital allocation and cash returns

Growth in cloud operating income demonstrates monetization of existing infrastructure, but project-level information needed to calculate the payback period on this quarter’s investment spending is unavailable. For now, AWS growth and margins should be assessed alongside company-wide FCF.

This quarter, cash CapEx/revenue is 26.5% and FCF/revenue is −3.8%. These ratios should not be used as a simple ranking of companies with different business models and FCF definitions.

06 Next-quarter and full-year outlook: implications

YoY +9.3%~+12.1% · QoQ −1.8%~+0.7%. Revenue comparison bases are 180.169 B$ for the year-earlier corresponding quarter and 200.606 B$ for this quarter. Growth rates are calculated from the original amounts.

Next-quarter operating income guidance is 22.5~26.5 B$. The company-reported YoY revenue growth range is +9~12%.

Prime Day took place in Q2 in 2026, versus Q3 in the prior year. The company explained that Q3 revenue growth would be approximately 4%p higher excluding that effect. Guidance indicating that Q3 revenue may be below Q2 therefore does not directly establish slowing demand.

RPO / Backlog

QoQ 364.000 → 496.000 B$ (+36.3% · +132.000 B$).

YoY 195.000 → 496.000 B$ (+154.4% · +301.000 B$).

Amounts committed under long-term customer contracts, mainly AWS, that have not yet been recognized as revenue; not Amazon’s entire order backlog · Contract balances are not equivalent to confirmed next-quarter revenue or cash inflows. RPO scope differs across companies.

Quarterly results · CY-aligned presentation

Amounts in B$. Based on the CY-aligned year of this report, the table shows all 4 quarters of the preceding year and the current year to date. Each fiscal quarter is assigned to the CY quarter with the greatest overlap in actual reporting dates, alongside its original FY/CY quarter and start/end dates. Amounts have not been recalculated into actual calendar quarters.

Indented rows are components or reference items for the parent metric. Net cash = cash and current investments − debt. Depending on the company definition, FCF may include additional adjustments such as lease principal and therefore differ from operating cash flow − cash CapEx. See the cash flow discussion for the detailed definition.