Amazon.com, Inc. (AMZN) reported a significant increase in its financial performance for Q1 2026, with AWS revenues growing 28% year-over-year to $37.6 billion, marking the fastest growth in 15 quarters. Total net sales rose 17% to $181.5 billion, with operating income climbing to $23.9 billion, up from $18.4 billion in the same period last year. North America segment sales increased 12% to $104.1 billion, while international sales rose by 19% to $39.8 billion.
Amazon’s cloud unit, AWS, achieved an operating income of $14.2 billion and a growing custom-silicon business exceeding a $20 billion annual revenue run rate. The company also announced partnerships for significant AI investments, including a commitment from OpenAI for approximately two gigawatts of Trainium capacity in 2027. For Q2 2026, Amazon forecasts net sales between $194 billion and $199 billion, indicating a growth of 16-19%.
Despite a healthy top line, Amazon faces challenges with a steep decline in free cash flow, which fell to $1.2 billion from $25.9 billion due to increased capital expenditures related to AI infrastructure, projected at $200 billion for 2026.
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