Amazon Expands Growth Beyond Cloud Computing
In Q2 2026, Amazon (NASDAQ: AMZN) reported a strong performance with year-over-year revenue growth of 20%, driven by multiple business segments beyond its cloud computing division. While AWS saw impressive 37% annual revenue growth due to AI adoption, other areas like online advertising and new AI-related ventures also contributed significantly. Amazon's ad segment generated $19.8 billion in Q2, a 26% increase year-over-year, contributing nearly 10% of total revenue with higher profit margins than e-commerce. The company has introduced AI-powered tools that have reduced costs for advertisers and improved campaign efficiency. Additionally, Amazon’s new businesses—its AI software segment and Trainium chip business—are each on track to reach $25 billion in annual run rate revenue. Physical advancements are also playing a role: the next-generation Proteus robot now handles heavier loads and operates more flexibly within warehouses using generative AI capabilities. This has led to faster delivery times for Prime members, with 40% more items delivered same-day or overnight.
Topics: AI agents Amazon cloud computing online advertising revenue growth