Amazon reported robust second-quarter 2026 earnings, with net income surging to $62.6 billion, or $5.75 per share, a substantial increase from $18.2 billion, or $1.68 per share, in the prior year. This includes a pre-tax income of $53.4 billion, primarily attributed to Amazon's investments in the AI lab Anthropic. The company's total revenue for the quarter reached $167.7 billion, exceeding analysts' expectations of $162 billion.
While Amazon beat Q2 estimates, its guidance for the third quarter presented a mixed picture. The company projected revenue between $197 billion and $202 billion, falling short of LSEG analysts' consensus of $204.1 billion. Similarly, the anticipated operating income for the third quarter, estimated to be in the range of $22.5 billion to $26.5 billion, was slightly above StreetAccount's forecast of $24.92 billion.
Amazon Web Services (AWS) continued to be a key driver, with early Q2 2026 forecasts projecting AWS revenue to reach $40.49 billion, marking over 30% growth. This follows a 28% expansion in Q1 2026. AWS's projected operating margin for Q2 2026 was estimated at 33.8%, contributing significantly, with an estimated $13.69 billion in operating profit, making up approximately 62% of Amazon's total projected operating income. Investors are closely watching AWS growth, with expectations for it to exceed 30% to avoid potential investor disappointment. The company also saw a sharp decline in free cash flow, down to $1.2 billion from $25.9 billion, largely due to a $59.3 billion increase in equipment spending for AI.
