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AMZN · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
An exceptional quarter with net sales up 20% and operating income up 43% driven by AWS's fastest growth in 18 quarters, while net income's 245% surge is mostly a one-off $53.4B non-operating gain tied to the Anthropic investment rather than core operations.
Net Income
$62,647M
up 245% y/y
Total Net Sales
$200,606M
up 20% y/y
Operating Income
$27,461M
up 43% y/y
Gross Profit
$104,828M
up 21% y/y
- Net Income +245% — $53.4 billion of non-operating pre-tax other income, primarily from investments in Anthropic
Source
«Second quarter 2026 net income includes non-operating pre-tax other income of $53.4 billion, primarily from our investments in Anthropic.»
press release, 8-K
All figures in $M.
| Line item | Amount and change |
|---|---|
| North America | $116,177 · +16% |
| International | $42,197 · +15% |
| AWS | $42,232 · +37% |
| Total Net Sales | $200,606 · +20% |
| Cost of Sales | $95,778 · +18.5% |
| Gross Profit | $104,828 · +21% |
| Operating Expenses | $77,367 · +12% · Fulfillment, Tech&Infra, S&M, G&A, other |
| Operating Income | $27,461 · +43% · 13.7% margin |
| Non-Operating Income* | $53,396 · n/m · mostly Anthropic mark-to-market gain |
| Pretax Income | $80,857 · +288% |
| Income Tax | $18,199 · +579% |
| Net Income | $62,647 · +245% · $5.75 diluted EPS |
Verdict: an exceptional quarter with net sales up 20% and operating income up 43% driven by AWS's fastest growth in 18 quarters, while net income's 245% surge is mostly a one-off $53.4B non-operating gain tied to the Anthropic investment rather than core operations.
OCF (TTM) $161.4B, +33% y/y; FCF (TTM) turned negative to -$7.6B on surging AI capex; Q3 2026 guidance: net sales $197.0-202.0B (+9-12%), operating income $22.5-26.5B.
Source and notation
* marks non-cash / ≈ estimated. Source: Amazon.com press release / 10-Q (SEC EDGAR).
Open as an image: AMZN, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
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Chart: “AMZN Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/amzn/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/amzn/q2-2026"><img src="https://whoreportstoday.com/t/amzn/q2-2026/sankey.png" alt="AMZN Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/amzn/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
https://whoreportstoday.com/t/amzn/q2-2026/sankey.png
<a href="https://whoreportstoday.com/t/amzn/q2-2026">AMZN Q2 2026 earnings chart (Who Reports Today)</a>
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- Net income of $62.6B includes $53.4B of pre-tax non-operating other income, primarily unrealized mark-to-market gains from the Anthropic investment — not core operating cash economics.
- AWS operating income jumped 64% y/y to $16.6B as sales grew 37% (fastest in 18 quarters), now the largest profit contributor despite being only 21% of sales.
- Free cash flow (TTM) swung to -$7.6B from +$18.2B a year ago, driven by a $66.1B y/y jump in AI-related capex — a stark contrast to the headline profit boom.
- Provision for income taxes rose sharply to $18.2B (vs $2.7B), largely reflecting deferred taxes on the Anthropic-related gain, not an operating tax rate change.
- North America and International margins improved modestly (7.9% and 4.1% operating margin) while AWS margin expanded to 39.4%, underscoring the cloud/AI-driven profit mix shift.
- Advertising services grew 26% y/y to $19.8B, continuing as a high-margin growth engine embedded within North America and International segment sales.
What distorts the picture in this report and what to watch beyond the headlines.
AMZN — Amazon.com operates an online retail platform and provides cloud computing services through Amazon Web Services.
The company is headquartered in Seattle, Washington.
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