Amazon Exceeds $200 Billion Revenue for First Time in Q2

Amazon.com Inc. reported its first quarterly revenue exceeding $200 billion for the second quarter ended June 30, recording $200.6 billion in net sales and earnings per share of $5.75. Both figures surpassed analyst projections. The results were primarily driven by Amazon Web Services (AWS), which grew 37% year-over-year to $42.2 billion, marking its fastest growth in 18 quarters. Additionally, advertising sales increased 26% to $19.8 billion, and the Prime Day event generated an estimated $26.4 billion in spending.

CEO Andy Jassy highlighted that the company's AI and chip businesses have each surpassed annual run rates of $25 billion. To meet persistent demand for AI capacity through 2027, Jassy increased the annual capital spending outlook to $220 billion. These aggressive investments contributed to a negative trailing 12-month free cash flow of $7.6 billion, a sharp decline from $18.2 billion in the prior year.

Following the announcement, Amazon shares rose more than 9% in after-hours trading. However, the company provided third-quarter revenue guidance between $197 billion and $202 billion, which fell below some analyst expectations.