Amazon Inc. (AMZN) reported a significant Q2 earnings boost, with revenues reaching approximately $200.6 billion, a 20% year-over-year growth and exceeding analyst expectations of $197.1 billion. The company also saw its net income soar to $62.6 billion, up 244% from $18.2 billion the previous year, driven by a mark-to-market gain from its investment in AI firm Anthropic.
Key highlights included a 37% surge in revenue from Amazon Web Services (AWS) to $42.2 billion, marking the cloud platform’s fastest growth rate in 18 quarters. Amazon’s operating income also hit a quarterly record of $27.5 billion, with expectations for Q3 net sales estimated between $197 billion and $202 billion. This follows an announcement of increased capital expenditure for AI infrastructure, with an outlook raised to $220 billion by 2026.
Following the earnings report, Amazon’s stock jumped over 15%, approaching a 52-week peak, driven by the company’s strong profitability and growing demand for AI services. Current trading is at approximately 30 times forward earnings, slightly above the S&P 500 average of 21 times.
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