Amazon Reports Strong Q2 Earnings, Driven by AWS Performance
Amazon delivered better-than-expected second-quarter earnings driven largely by strong performance from its Amazon Web Services (AWS) division. The company reported revenue of $200.61 billion and EPS of $5.75 per share, both exceeding analyst estimates. Investors responded positively with a nearly 9.5% surge in after-hours trading for AMZN stock. Analysts highlighted AWS's profitability as evidence that AI investments are beginning to pay off, noting improved operating margins from 33% last year to 39%. The division’s annual revenue of $148 billion surpassed the total revenue of 474 S&P 500 companies. Amazon also raised its capital expenditure forecast for 2026 to $220 billion due to increased demand and higher memory costs. The results have bolstered confidence in AI infrastructure providers, with analysts like Shay Boloor expressing optimism about chipmakers such as Micron Technology (NASDAQ:MU), SK Hynix Inc. (NASDAQ:SKHY), and SanDisk Corp. (NASDAQ:SNDK). Despite the strong earnings report, Amazon’s third-quarter revenue guidance fell slightly below analyst expectations.
Topics: AI Investments Amazon AWS Stock Performance