Amazon's Q2 Earnings to Highlight AWS Growth Amid AI Spending
Amazon is set to report its second-quarter earnings, with a focus on the performance of Amazon Web Services (AWS) amid significant investments in artificial intelligence infrastructure. The company plans $200 billion in capital expenditures for 2026 and could raise this figure if it shows strong returns from AI-driven growth. Analysts are closely watching AWS revenue projections, which stand at $40.5 billion for the quarter—a 31% increase year-over-year—alongside remaining performance obligations (RPO) of $364 billion. Investor sentiment will also be influenced by Amazon's e-commerce and advertising segments, expected to report revenues of $69.8 billion (+13%) and $19.3 billion (+23%), respectively. The company is expanding its chip sales beyond cloud services, potentially boosting profitability through direct hardware offerings. The market reaction will hinge on whether AWS growth justifies the capital spending increases seen in Alphabet's recent results.
Topics: AI spending AWS Capital expenditures Investor sentiment