Amazon soars 9% on Q2 beat, AWS fastest in 18 quarters — SkimNews
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- Amazon reported Q2 revenue of $200.61 billion versus the $196.47 billion analyst estimate from LSEG, with EPS of $5.75 against $1.82 expected, sending shares up more than 9% after the bell.
- AWS revenue hit $42.2 billion versus $40.54 billion expected, expanding 37% year over year — the fastest growth rate in 18 quarters, according to CEO Andy Jassy.
- Amazon's AI and homegrown chips units, including the Trainium and Graviton brands, each exceeded a $25 billion annual revenue run rate, with Jassy calling AWS "booming."
- Amazon's advertising segment generated $19.81 billion in revenue versus $19.43 billion expected, per StreetAccount, underscoring the company's diversifying revenue mix beyond retail and cloud.
- Amazon guided Q3 revenue to $197 billion–$202 billion, below the $204.1 billion LSEG consensus, blaming tough comparisons from its decision to move Prime Day from July to June.
- Excluding the Prime Day timing shift, Amazon said Q3 2026 growth "would be nearly 400 basis points higher," framing the guidance miss as a calendar quirk rather than weakening demand.
Why it matters: AWS's re-acceleration to 37% growth — its fastest in 18 quarters — combined with Amazon's in-house chips business crossing a $25 billion run rate, repositions the company as a credible third force in cloud AI infrastructure against Microsoft Azure and Google Cloud. At the same time, Q3 guidance of $197–$202 billion landing below the $204.1 billion consensus creates a tension investors must weigh: momentum in cloud and chips versus near-term revenue optics.
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