Amazon surges 10% after hours on Q2 beat; revenue hits $200B

Published Jul 30, 11:27 PM UTC

Amazon shares surged about 10% to $258 in after-hours trading following a much stronger-than-expected second-quarter earnings report. Revenue rose 20% year-over-year to $200 billion, beating estimates, while operating income jumped 43% to $27.46 billion, well above consensus. The company's cloud unit, AWS, delivered its fastest growth in 18 quarters at 36.8% year-over-year, reaching $42.23 billion in revenue. CEO Andy Jassy provided a clear explanation of how Amazon's massive AI investments will generate returns, easing investor concerns about capital expenditures. Amazon raised its 2026 capex forecast by $20 billion to $220 billion, largely due to higher memory costs, but unlike Alphabet and Meta, the stock did not decline. Jassy emphasized that as revenue growth outpaces incremental capex, free cash flow and return on invested capital will become compelling. The article reiterates a 1 rating and $300 price target.