Overview
- Amazon, which reported Q2 results on July 30, posted about 20% year‑over‑year revenue growth to $200.6 billion and earnings per share of $5.75, far above last year’s $1.68.
- AWS remains the growth engine with roughly 36–37% year‑over‑year revenue growth, a $169 billion annualized run rate, and a $496 billion contracted backlog that provides forward revenue visibility.
- Management said AWS lacks enough capacity to meet 2026 demand, expects constraints into 2027, and sees striking demand for 2028, prompting a roughly $220 billion capital‑spending plan to expand cloud and AI infrastructure.
- Amazon reported its AI business and custom chips have topped $25 billion in annualized revenue and advertising generated $19.8 billion in Q2, both helping lift margins and support monetization of AI investments.
- Investors responded by driving the stock up about 20–21% in the days after the report, with analysts citing stronger monetization and backlog visibility as reasons for further upside and a brighter profit outlook.