Amazon Reports Strong Revenue Growth Driven by AI Investments
In the second quarter of 2026, Amazon reported a significant increase in revenue driven primarily by its artificial intelligence (AI) cloud business. The company's net sales rose by 20% to $200.6 billion, surpassing expectations and fueled largely by triple-digit growth in both AWS AI services and chips production. These segments now generate an annualized revenue of approximately $25 billion each. Amazon’s North America segment saw a 16% increase in sales, while international sales rose 15%, with AWS contributing the most at a 37% jump. The company also reported net income of $62.6 billion, largely due to pre-tax gains from its investment in Anthropic, an AI startup. Despite strong revenue performance, Amazon's free cash flow turned negative for the first time in over a year, with a $7.6 billion outflow compared to an inflow of $18.2 billion during the same period last year.
Tickers: $AMZN
Topics: AI Amazon Revenue AWS Cloud Computing Free Cash Flow