Amazon Stock Jumps 15% as AWS Revenue Surges 36.7%
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- Amazon stock soared 15% on Friday after the company topped Q2 expectations, with AWS generating $42.2 billion in revenue, up 36.7% year over year, and adding $4.6 billion in sequential revenue — about 80% more than its largest quarter-over-quarter jump ever.
- Amazon Web Services backlog stands at $496 billion and is growing at triple-digit year-over-year rates, with the unit now running at roughly a $170 billion annualized revenue run rate, per CEO Andy Jassy.
- Amazon's AI and custom chip businesses have each surpassed a $25 billion annualized revenue run rate, with the custom chip segment specifically growing at a triple-digit year-over-year clip.
- Amazon raised its full-year capital expenditure guidance to approximately $220 billion, up from prior guidance of around $200 billion, citing demand that continues to outstrip server capacity.
- Andy Jassy said 2027 planned AWS expansion is already largely booked into 2028, and CFRA Research's Arun Sundaram called the quarter a "home run" and said the growth rate justifies the spending.
- Amazon shares are up 17% year-to-date following the report, with Wall Street appearing to accept the elevated capex as AWS margins expand.
Why it matters: AWS grew 36.7% year over year while Amazon simultaneously raised capex guidance by roughly $20 billion to ~$220 billion — yet investors bid the stock up 15% rather than punishing the spend. With a $496 billion backlog and 2027 capacity already booked into 2028, Amazon has effectively turned its capex burden into a demand signal, and the 17% YTD gain shows shareholders agree the AI infrastructure bill is buying real, contracted revenue.
