Amazon’s net sales increased by 20% to $200.6bn (£149.47bn) year on year and its operating profit increased 43% to $27.5bn (£20.49bn) in the last financial quarter. AWS net sales increased 37% to a $169bn (£125.9bn) annualised revenue run rate – its fastest growth in 18 quarters.
The ecommerce and cloud company also exceeded a $25 billion annual revenue run rate for AWS’s AI business, growing triple-digit percentages year on year.
“AWS is booming”
Commenting on the results, Andy Jassy, Amazon’s president and CEO, ran through the list of the company’s successes: “AWS is booming, growing 36.7% year-over-year in Q2…and our AI and Chips businesses each eclipsed run rates of more than $25 billion. In Stores, we again set record delivery speeds for Prime members in the first half of the year – over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And, Advertising had another strong quarter with 26% year-over-year growth.
He added: “There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond.”
The company’s stock jumped 13% following the results announcement.
Battle of the Big Tech
The latest quarter reinforces AI’s position as the new battleground for Big Tech. Just days after Microsoft posted blockbuster cloud and AI results – with its stock jumping as much as 15% – Amazon has demonstrated that it too is transforming AI demand into meaningful revenue.
In February, Amazon revealed that it expected to spend roughly $200bn in 2026 on capital expenditures, with most of that money going toward AI infrastructure, indicating the company is betting on much larger returns than the $25bn its AI business has generated so far.
As AWS, Azure and Google Cloud compete for enterprise AI workloads, the race is on to see who can be most successful at converting investment into profit.
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