Amazon.com Inc. reported second-quarter revenue of $200.61 billion, surpassing analyst expectations of $196.46 billion, according to Benzinga. The company also posted earnings of $5.75 per share, significantly exceeding estimates of $1.82 per share. This marks a 20% increase in total revenue year-over-year.
Segment Performance
Revenue from North America reached $116.2 billion, up 16%, while international sales were $42.2 billion, reflecting a 15% increase. Amazon Web Services (AWS) generated $42.2 billion, achieving a growth rate of 37%, the fastest in 18 quarters. CEO Andy Jassy noted,
AWS is booming, growing 36.7% year-over-year in Q2 — our fastest growth in 18 quarters.
Operating cash flow increased by 33% to $161.4 billion for the trailing 12 months. However, free cash flow showed an outflow of $7.6 billion, largely due to a $66.1 billion rise in capital expenditures related to AI investments. Amazon ended the quarter with $80.93 billion in cash and equivalents.
Future Outlook
For the third quarter, Amazon expects revenue between $197 billion and $202 billion, below the consensus estimate of $204.08 billion. Operating income is projected to be between $22.5 billion and $26.5 billion, compared to $17.4 billion in the same quarter last year. Jassy expressed optimism about upcoming developments, stating,
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.
Related coverage: Microsoft Q4 Earnings Surge 18% on Cloud and AI Growth.
Amazon's strong earnings and AWS growth are likely to boost investor sentiment in technology stocks, particularly those focused on cloud services. The company's capital expenditures related to AI may also influence tech sector valuations.
Investors will watch for insights during the earnings call scheduled for 5 p.m. ET, where Jassy is expected to discuss future initiatives, including the impact of new tariffs on operations.