Amazon Reports Strong Q2 Growth Across Multiple Business Segments
In its second quarter of fiscal year 2026, Amazon reported robust revenue growth across several key business segments. While cloud computing via Amazon Web Services (AWS) saw a notable rebound with 37% year-over-year revenue growth—driven largely by AI adoption—the company also outperformed in other areas such as online advertising and new AI-related ventures. Online ad revenue surged to $19.8 billion, up 26%, contributing nearly 10% of total revenue and benefiting from higher profit margins compared to e-commerce. Amazon's use of AI-powered ad agents reduced costs per impression by 8% and cost per acquisition by 6%. Additionally, two new businesses—its AI software segment and Trainium chip business—are each on track for over $25 billion in annualized revenue. Amazon also made strides with physical AI applications. The next-generation Proteus robot now handles heavier loads (up to 1,300 pounds) and operates more flexibly within warehouses using generative AI capabilities. This advancement contributed to faster delivery times for Prime members.
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Topics: advertising Amazon cloud computing Q2 earnings revenue growth