Amazon reports strong profits and net sales for Q2, fueled by robust growth in cloud computing unit

Published 30 July 2026 · tech

NEW YORK (AP) — Amazon delivered strong profits and net sales during its fiscal second quarter, helped by surging growth in its prominent cloud computing

NEW YORK (AP) — Amazon delivered strong profits and net sales during its fiscal second quarter, helped by surging growth in its prominent cloud computing unit. The e-commerce and technology company said Thursday that sales in its cloud computing unit called AWS rose 37% during the April-June period, faster than the 28% clip in the previous quarter and marking the fastest rate of growth in 18 quarters. But the Seattle-based company offered a cautious sales outlook for the current quarter. Still, shares rose more than 7% in after-hours trading. Quick answers to key questions • 5 QUESTIONS 1 What contributed to Amazon's strong profits in Q2? ⌵ Amazon's strong profits in Q2 were primarily driven by robust growth in its cloud computing unit, AWS, which reported a 37% increase in sales. 2 Why did Amazon's CEO mention that AWS is 'booming'? ⌵ AWS's growth is notable as it marked the fastest rate in 18 quarters, indicating strong demand and successful expansion in cloud services and AI technologies. 3 How is Amazon improving delivery speeds for Prime members? ⌵ Amazon is enhancing delivery speeds for Prime members through advancements in robotics and AI technology, achieving record same-day and overnight delivery rates. 4 What concerns do investors have regarding Amazon's AI spending?

⌵ Investors are concerned that Amazon's significant investment in AI and related technologies may not yield immediate returns and could strain cash flows. 5 Should Amazon investors be worried about the company's cautious sales outlook? ⌵ Investors might be cautious about Amazon's sales outlook, as the company expects slower growth despite past achievements, indicating potential market uncertainties. In a statement released Thursday, Amazon's CEO and president Andy Jassy said AWS is “booming” and noted that its AI and chips businesses each eclipsed run rates of more than $25 billion. He noted that in stores, the company set record delivery speeds for its Prime members in the first half of the year, noting that 40% more items were delivered either same-day or overnight. “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,” he said. Investors were closely watching Amazon’s quarterly earnings to see if the company’s $200 billion investment in artificial intelligence, robots, semiconductors and satellites is starting to pay off. The planned expenditure for the year marked a 60% increase from Amazon’s $128 billion in capital spending last year and raised concerns among investors. Amazon was among the last of the tech giants to report its earnings results covering the latest three-month period.