Amazon (NASDAQ: AMZN) reported robust Q2 earnings, showcasing strong growth from Amazon Web Services (AWS) and operational efficiency in its e-commerce segment. Overall revenue rose 13% to $167.7 billion, exceeding the $162.1 billion analyst consensus, while adjusted earnings per share increased 33% to $1.68, surpassing expectations of $1.33.
AWS revenue grew 17.5% to $30.9 billion, with operating income up 10% to $10.2 billion. North America sales jumped 11% to $100.1 billion, and international sales grew 16% to $36.8 billion. Advertising revenue soared by 23% to $15.7 billion, beating analysts’ forecast of $14.9 billion. Despite these gains, investors were unsettled by AWS’s growth lagging behind competitors and the company’s cautious profitability outlook for future quarters.
For Q3, Amazon aims for revenue between $174 billion and $179.5 billion, projecting a growth rate of 10% to 13%. Analysts had anticipated operating income of $19.5 billion on revenue of $173.1 billion, leading to concerns about profitability as Amazon invests heavily in AI infrastructure.
