Amazon Reports Strong Q2 Earnings, Driven by Cloud Growth
Amazon reported second-quarter earnings that significantly exceeded Wall Street expectations, driven primarily by strong performance in its cloud computing division. The company earned $5.75 per diluted share on revenue of $200.6 billion—well above the expected $1.82 and $196.9 billion respectively. Amazon Web Services (AWS) saw a 37% year-over-year increase to $42.2 billion in revenue, marking its fastest growth rate in nearly five years. Despite strong top-line results, free cash flow turned negative at an outflow of $7.6 billion due to increased capital spending on AI infrastructure and property purchases totaling $66.1 billion year-over-year. Amazon also reported a significant non-operating pre-tax income boost from its investment in Anthropic, contributing $53.4 billion to net income. Looking ahead, the company expects Q3 sales between $197 billion and $202 billion with operating income of $22.5 billion to $26.5 billion.
Tickers: $AMZN
Topics: AI Investments Amazon AWS Cloud Computing Revenue Growth