Amazon Q2 earnings beat estimates as AWS sales surge 37%

Published Aug 1, 08:17 PM UTC

Amazon reported exceptional Q2 2026 earnings, significantly exceeding analyst expectations. The standout performer was Amazon Web Services (AWS), which posted 37% sales growth versus the 31% consensus estimate. AWS generated $16.6 billion in operating income, accounting for approximately 60% of Amazon's total profit despite only 21% of revenue. Amazon is investing heavily in AI infrastructure, with $220 billion in capital expenditures this year primarily for data centers. Companywide revenue grew 20% year-over-year, one of the best growth rates since the COVID-19 era. The stock surged following the earnings release. The article argues that AWS's accelerating growth, driven by AI demand, positions Amazon for continued market-beating returns.