Amazon Beats Q2 2026 Estimates on Strong Cloud and Chip Revenue

Amazon reported second-quarter 2026 earnings of $5.75 per share, far surpassing the $1.82 per-share consensus forecast from analysts polled by LSEG. Net income rose to $62.6 billion, up from $18.2 billion a year earlier. Revenue for the quarter was not disclosed in detail, but the company highlighted that North America sales grew 16% year over year to $116.2 billion, driven in part by the shifted Prime Day event. The results lifted the stock more than 9% in extended trading.

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Amazon projected full-year revenue between $197 billion and $202 billion, below the $204.1 billion expected by LSEG analysts. Management attributed the gap to “tough comparisons” with the prior year’s third quarter, noting that moving Prime Day from its usual July slot to June altered seasonal dynamics. Excluding the effects of this year’s and last year’s Prime Day, Amazon said third-quarter growth would have been nearly 400 basis points higher. U.S. online retail sales during the weeklong event rose 9% to $26.4 billion, underscoring the promotional boost.

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CEO Andy Jassy described Amazon Web Services (AWS) as “booming,” pointing to its fastest growth since 2021. The cloud segment’s artificial-intelligence and in-house chip businesses—namely the Trainium and Graviton families—each surpassed a $25 billion annual revenue run rate. AWS performance was a focal point for investors, especially after rivals reported strong cloud gains: Google Cloud grew 82% and Microsoft Azure rose 43% in their most recent fiscal quarters.

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The earnings beat reinforces Amazon’s diversification beyond retail, with cloud and custom silicon emerging as key growth pillars. While revenue guidance falls short of analyst expectations, the company’s emphasis on AI-driven services and chip production suggests a strategic shift toward higher-margin businesses. Operating income for the upcoming third quarter is forecast between $22.5 billion and $26.5 billion, compared with the $24.92 billion median estimate from StreetAccount analysts. The market’s positive reaction indicates confidence that these initiatives will sustain profitability even as seasonal factors, such as the altered Prime Day schedule, temporarily affect topline performance.

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