Sep. 24 at 2:23 AM
Amazon heads into the final months of 2026 with AWS and advertising as key growth drivers, while investors assess whether its heavy artificial-intelligence spending can support further gains in the stock.
Second-quarter sales rose 20% year over year to
$200.6 billion, while operating income increased 43% to
$27.5 billion, driven largely by AWS. AWS revenue jumped 37% to
$42.2 billion and operating income rose 64% to
$16.6 billion. Its backlog expanded to
$496 billion from
$364 billion in the first quarter, improving visibility into future revenue.
The company expects 2026 capital expenditures of about
$220 billion, up from its previous estimate of
$200 billion, while free cash flow was negative
$7.7 billion in the second quarter. Deutsche Bank said much of AWS’s 2027 capacity is already reserved, with additional commitments extending into 2028.
Advertising is another growth engine, with revenue rising 26% to
$19.8 billion.
$AMZN