AMAZON.COM ANNOUNCES SECOND QUARTER RESULTS

Transcript

1. #1prepared remarks

   EX-99.1 2 amzn-20260630xex991.htm EX-99.1

2. #2prepared remarks

   AMAZON.COM ANNOUNCES SECOND QUARTER RESULTS

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   Net sales increased 20% year-over-year Operating income was $27.5 billion, up 43% year-over-year AWS net sales increased 37%—its fastest growth in 18 quarters—to a $169 billion annualized revenue run rate

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   SEATTLE—(BUSINESS WIRE) July 30, 2026—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2026.

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   • Net sales increased 20% to $200.6 billion in the second quarter, compared with $167.7 billion in second quarter 2025. Excluding the $0.1 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 20% compared with second quarter 2025. • North America segment sales increased 16% year-over-year to $116.2 billion. • International segment sales increased 15% year-over-year to $42.2 billion. • AWS segment sales increased 37% year-over-year to $42.2 billion. • Operating income increased to $27.5 billion in the second quarter, compared with $19.2 billion in second quarter 2025. • North America segment operating income was $9.1 billion, compared with $7.5 billion in second quarter 2025. • International segment operating income was $1.7 billion, compared with $1.5 billion in second quarter 2025. • AWS segment operating income was $16.6 billion, compared with $10.2 billion in second quarter 2025. • Net income increased to $62.6 billion in the second quarter, or $5.75 per diluted share, compared with $18.2 billion, or $1.68 per diluted share, in second quarter 2025. • Second quarter 2026 net income includes non-operat…

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   • Operating cash flow increased 33% to $161.4 billion for the trailing twelve months, compared with $121.1 billion for the trailing twelve months ended June 30, 2025. • Free cash flow decreased to an outflow of $7.6 billion for the trailing twelve months, driven primarily by a year-over-year increase of $66.1 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow inflow of $18.2 billion for the trailing twelve months ended June 30, 2025.

7. #7Andy Jassy · President and CEO, Amazon

   AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion,

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   Some other highlights since the company’s last earnings announcement include that Amazon: • Exceeded a $25 billion annual revenue run rate for AWS’s AI business, growing triple-digit percentages year-over-year. • Exceeded a $25 billion annual revenue run rate for its chips business, growing triple-digit percentages year-over-year. • Continued gaining momentum with Trainium, with the two leading AI labs in the world, Anthropic and OpenAI, making multi-year, multi-gigawatt commitments; an increasing number of AI start-ups adopting Trainium, including unicorns like NEURA Robotics and Odyssey; and commitments from other startups like TwelveLabs, Decart, Poolside, Karakuri, Inc., Metagenomi Therapeutics, Inc., NetoAI, and Splash Music, as well as larger companies like Uber and Pinterest. • Released Graviton5 into general availability. Graviton delivers up to 30 to 40% better price-performance than comparable instances, and Graviton5 delivers up to 25% better compute performance than Graviton4. Graviton is used by 98% of the top 1,000 EC2 customers, revenue commitments have increased nearly 3x quarter-over-quarter, and Graviton5 is growing nearly 2x faster than Graviton4 did. • Add…

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   • Announced an investment of $1 billion to create AWS Forward Deployed Engineering, a team of AI engineers embedded directly with customers to co-develop and deploy agentic AI solutions in days rather than months. Early customers include Allen Institute, Cox Automotive, the NBA, the NFL, Ricoh, and Southwest Airlines. • Announced general availability of AWS Secret Cloud for Industry, giving defense contractors a faster, more secure path to classified innovation, with Northrop Grumman first to run classified workloads on the platform, and committed up to $1 billion in cloud credits to accelerate U.S. Intelligence Community cloud migration and modernization. • Announced its global data centers are over 7x more water-efficient than the industry average. Amazon also reached 75% progress toward its goal to be water positive across global data center operations by 2030, and achieved water-positive status across its direct operations in India ahead of its 2027 target. • Announced new AWS agreements with Warner Bros. Discovery, Vodafone, Siemens Energy, Ryanair, Pinterest, Snowflake, Moody’s, Danske Bank, WNBA, Pennymac, Fiserv, WPP Enterprise Solutions, Vonage, Recursive, fal, Chai Di…

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    • Completed four additional launches for Amazon Leo, its low Earth orbit satellite network, bringing the total constellation to nearly 400 satellites in orbit—enough to begin initial satellite internet service this year. • Received approval from the National Highway Traffic Safety Administration (Part 555 Exemption) for Zoox to charge for rides—the first purpose-built robotaxi to receive this exemption—paving the way for Zoox to begin offering paid commercial service to customers. • Supported relief efforts following earthquakes in Venezuela with its Amazon Disaster Relief program, donating and delivering more than 650,000 emergency supplies to more than a dozen nonprofits and establishing weekly humanitarian relief flights to Caracas in a first-of-its-kind collaboration with Airlink, the U.S. State Department, and World Food Programme, delivering approximately 120 tons of supplies.

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    Financial Guidance The following forward-looking statements reflect Amazon.com’s expectations as of July 30, 2026, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below. Third Quarter 2026 Guidance • Net sales are expected to be between $197.0 billion and $202.0 billion, or to grow between 9% and 12% compared with third quarter 2025. Excluding the impact of Prime Day in both 2025 and 2026, third quarter 2026 year-over-year growth would be nearly 400 basis points higher. This guidance anticipates an unfavorable impact of approximately 80 basis points from foreign exchange rates. • Operating income is ex…

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    About Amazon Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

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    AMAZON.COM, INC. Consolidated Statements of Cash Flows (in millions) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

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    | Three Months Ended June 30, | | Six Months Ended June 30, | | Twelve Months Ended June 30, | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | | | | | | | | | | | | | | | | | | | | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | 69,893 | | | $ | 104,692 | | | $ | 82,312 | | | $ | 90,106 | | | $ | 71,673 | | | $ | 61,453 | | OPERATING ACTIVITIES: | | | | | | | | | | | | Net income | 18,164 | | | 62,647 | | | 35,291 | | | 92,902 | | | 70,623 | | | 135,281 | | Adjustments to reconcile net income to net cash from operating activities: | | | | | | | | | | | | Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other | 15,227 | | | 19,988 | | | 29,489 | | | 38,933 | | | 58,562 | | | 75,200 | | Stock-based compensation | 6,534 | | | 6,038 | | | 10,223 | | | 10,070 | | | 20,551 | | | 19,314 | | | | | | | | | | | | | | Non-operating expense (income), net | (1,258) | | | (53,381) | | | (4,075) | | | (69,013) | | | (4,702) | | | (79,818) | | Deferred income taxes | 11 | | | 17,691 | | | 518 | | | 30,489 | | | (2,407) | | | 41,441 | | Changes in operating assets and liabilities: | | | | …

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    AMAZON.COM, INC. Consolidated Statements of Operations (in millions, except per share data) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | |

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    | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2026 | | 2025 | | 2026 | | | | | | | | | | | | | | | Net product sales | $ | 68,246 | | | $ | 77,602 | | | $ | 132,216 | | | $ | 148,906 | | Net service sales | 99,456 | | | 123,004 | | | 191,153 | | | 233,219 | | Total net sales | 167,702 | | | 200,606 | | | 323,369 | | | 382,125 | | Operating expenses: | | | | | | | | Cost of sales | 80,809 | | | 95,778 | | | 157,785 | | | 183,241 | | Fulfillment | 25,976 | | | 29,633 | | | 50,569 | | | 56,922 | | Technology and infrastructure | 27,166 | | | 33,158 | | | 50,160 | | | 62,725 | | Sales and marketing | 11,416 | | | 11,698 | | | 21,179 | | | 22,012 | | General and administrative | 2,965 | | | 2,788 | | | 5,593 | | | 5,375 | | Other operating expense (income), net | 199 | | | 90 | | | 507 | | | 537 | | Total operating expenses | 148,531 | | | 173,145 | | | 285,793 | | | 330,812 | | Operating income | 19,171 | | | 27,461 | | | 37,576 | | | 51,313 | | Interest income | 1,085 | | | 1,295 | | | 2,151 | | | 2,430 | | Interest expense | (516) | | | (1,314) | | | (1,057) | | | (2,114) | | Other income (expense), net | 1,117 | | | 53,415 | | | 3,866 | …

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    AMAZON.COM, INC. Consolidated Statements of Comprehensive Income (in millions) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | |

18. #18net of tax of

    Other income (expense), net,

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    AMAZON.COM, INC. Segment Information (in millions) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | |

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    | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2026 | | 2025 | | 2026 | | | | | | | | | | | | | | | North America | | | | | | | | Net sales | $ | 100,068 | | | $ | 116,177 | | | $ | 192,955 | | | $ | 220,320 | | Operating expenses | 92,551 | | | 107,054 | | | 179,597 | | | 202,930 | | Operating income | $ | 7,517 | | | $ | 9,123 | | | $ | 13,358 | | | $ | 17,390 | | | | | | | | | | International | | | | | | | | Net sales | $ | 36,761 | | | $ | 42,197 | | | $ | 70,274 | | | $ | 81,986 | | Operating expenses | 35,267 | | | 40,480 | | | 67,763 | | | 78,845 | | Operating income | $ | 1,494 | | | $ | 1,717 | | | $ | 2,511 | | | $ | 3,141 | | | | | | | | | | AWS | | | | | | | | Net sales | $ | 30,873 | | | $ | 42,232 | | | $ | 60,140 | | | $ | 79,819 | | Operating expenses | 20,713 | | | 25,611 | | | 38,433 | | | 49,037 | | Operating income | $ | 10,160 | | | $ | 16,621 | | | $ | 21,707 | | | $ | 30,782 | | | | | | | | | | Consolidated | | | | | | | | Net sales | $ | 167,702 | | | $ | 200,606 | | | $ | 323,369 | | | $ | 382,125 | | Operating expenses | 148,531 | | | 173,145 | | | 285,793 | | | 330,812 | | Operating income | 19,171 | | | 27…

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    AMAZON.COM, INC. Consolidated Balance Sheets (in millions, except per share data) | | | | | | | | | | | | | December 31, 2025 | | June 30, 2026 | | | | (unaudited) | ASSETS | | | | Current assets: | | | | Cash and cash equivalents | $ | 86,810 | | | $ | 78,213 | | Marketable securities | 36,219 | | | 44,775 | | Inventories | 38,325 | | | 38,184 | | Accounts receivable, net and other | 67,729 | | | 88,092 | | Total current assets | 229,083 | | | 249,264 | | Property and equipment, net | 357,025 | | | 446,046 | | Operating leases | 86,054 | | | 92,743 | | Goodwill | 23,273 | | | 23,504 | | Other assets | 122,607 | | | 284,132 | | Total assets | $ | 818,042 | | | $ | 1,095,689 | | LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | Current liabilities: | | | | Accounts payable | $ | 121,909 | | | $ | 147,440 | | Accrued expenses and other | 75,520 | | | 73,406 | | Unearned revenue | 20,576 | | | 20,428 | | Total current liabilities | 218,005 | | | 241,274 | | Long-term lease liabilities | 87,339 | | | 94,338 | | Long-term debt | 65,648 | | | 128,894 | | Other long-term liabilities | 35,985 | | | 79,563 | | Commitments and contingencies | | | | Stockholders’ equit…

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    AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except per share data) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Y/Y % Change | Cash Flows and Shares | | | | | | | | Operating cash flow -- trailing twelve months (TTM) | $ | 113,903 | | $ | 121,137 | | $ | 130,691 | | $ | 139,514 | | $ | 148,531 | | $ | 161,403 | | 33 | % | Operating cash flow -- TTM Y/Y growth | 15 | % | 12 | % | 16 | % | 20 | % | 30 | % | 33 | % | N/A | Purchases of property and equipment, net of proceeds from sales and incentives -- TTM | $ | 87,978 | | $ | 102,953 | | $ | 115,903 | | $ | 128,320 | | $ | 147,299 | | $ | 169,007 | | 64 | % | Free cash flow -- TTM (1) | $ | 25,925 | | $ | 18,184 | | $ | 14,788 | | $ | 11,194 | | $ | 1,232 | | $ | (7,604) | | (142) | % | Common shares and stock-based awards outstanding | 10,876 | | 10,952 | | 10,955 | | 10,953 | | 10,949 | | 11,027 | | 1 | % | Common shares outstanding | 10,613 | | 10,660 | | 10,687 | | 10,731 | | 10,754 | | 10,783 | | 1 | % | Stock-based awards outstanding | 263 | | 292 | | 268 | | 222 | | 195 | | 244 | | (16) | % | …

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    Purchases of property and equipment, net of proceeds from sales and incentives.

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    AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Y/Y % Change | Segments | | | | | | | | North America Segment: | | | | | | | | Net sales | $ | 92,887 | | $ | 100,068 | | $ | 106,267 | | $ | 127,083 | | $ | 104,143 | | $ | 116,177 | | 16 | % | Net sales -- Y/Y growth, excluding F/X | 8 | % | 11 | % | 11 | % | 10 | % | 12 | % | 16 | % | N/A | Net sales -- TTM | $ | 394,043 | | $ | 404,078 | | $ | 414,808 | | $ | 426,305 | | $ | 437,561 | | $ | 453,670 | | 12 | % | Operating income | $ | 5,841 | | $ | 7,517 | | $ | 4,789 | | $ | 11,472 | | $ | 8,267 | | $ | 9,123 | | 21 | % | F/X impact -- unfavorable | $ | (32) | | $ | (46) | | $ | (53) | | $ | (73) | | $ | (41) | | $ | (6) | | N/A | Operating income -- Y/Y growth (decline), excluding F/X | 18 | % | 49 | % | (14) | % | 25 | % | 42 | % | 21 | % | N/A | Operating margin -- % of North America net sales | 6.3 | % | 7.5 | % | 4.5 | % | 9.0 | % | 7.9 | % | 7.9 | % | N/A | Operating income -- TTM | $ | 25,825 | | $ | 28,277 | | $ | 27,403 | | $ | 29,619 | | $ | 32,04…

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    AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except employee data) (unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Y/Y % Change | Net Sales | | | | | | | | Online stores (1) | $ | 57,407 | | $ | 61,485 | | $ | 67,407 | | $ | 82,988 | | $ | 64,254 | | $ | 70,432 | | 15 | % | Online stores -- Y/Y growth, excluding F/X | 6 | % | 10 | % | 8 | % | 8 | % | 9 | % | 15 | % | N/A | Physical stores (2) | $ | 5,533 | | $ | 5,595 | | $ | 5,578 | | $ | 5,855 | | $ | 5,785 | | $ | 5,794 | | 4 | % | Physical stores -- Y/Y growth, excluding F/X | 6 | % | 7 | % | 7 | % | 5 | % | 4 | % | 4 | % | N/A | Third-party seller services (3) | $ | 36,512 | | $ | 40,348 | | $ | 42,486 | | $ | 52,816 | | $ | 41,578 | | $ | 46,780 | | 16 | % | Third-party seller services -- Y/Y growth, excluding F/X | 7 | % | 10 | % | 11 | % | 10 | % | 12 | % | 16 | % | N/A | Advertising services (4) | $ | 13,921 | | $ | 15,694 | | $ | 17,703 | | $ | 21,317 | | $ | 17,243 | | $ | 19,809 | | 26 | % | Advertising services -- Y/Y growth, excluding F/X | 19 | % | 22 | % | 22 | % | 22 | % | 22 | % | 26 |…

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    Subscription services.

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    Amazon.com, Inc. Certain Definitions Customer Accounts • References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period. Seller Accounts • References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period. AWS Customers • References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the …

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    Contacts: | | | | | | | | | | | | Amazon Investor Relations | | Amazon Public Relations | amazon-ir@amazon.com | | amazon-pr@amazon.com | amazon.com/ir | | amazon.com/pr |