Amazon 8-K
PositiveEarningsNew guidance
AWS growth hit its fastest pace in 18 quarters; higher AI capital spending pushed TTM free cash flow negative.
Filed 2026-07-30 16:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 guidance. Net sales rose 20% Y/Y and operating income rose 43%; AWS sales grew 37%, its fastest growth in 18 quarters. Net income included $53.4B of non-operating income, primarily from Anthropic investments, while higher AI-related capital spending drove trailing-twelve-month free cash flow negative.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net sales | $201B | $168B | 20% |
| Operating income | $27.5B | $19.2B | 43% |
| Net income | $62.6B | $18.2B | 245% |
| Diluted EPS | $5.75 | $1.68 | 242% |
| Operating cash flow, TTM | $161B | $121B | 33% |
| Free cash flow, TTM | $(7.60)B | $18.2B | n/m |
- AWS net sales were $42.2B, up 37% Y/Y; AWS operating income was $16.6B, up 64%.
- TTM purchases of property and equipment, net of sales and incentives, increased $66.1B Y/Y, primarily reflecting AI investment; this drove the free cash flow outflow.
- At 6/30/2026, cash and cash equivalents were $78.2B; long-term debt carrying value was $128.9B, vs $65.6B at 12/31/2025.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales | Q3 2026 | $197.0B-$202.0B; 9%-12% Y/Y | — | — |
| Operating income | Q3 2026 | $22.5B-$26.5B | — | — |
Sales guidance includes an ≈80 bp unfavorable foreign-exchange impact; excluding Prime Day in both years, Y/Y growth would be nearly 400 bp higher.
Investor Takeaways
- Compare Q3 net sales and operating income with the guided ranges; sales growth also reflects Prime Day timing.
- Watch whether AWS growth continues and whether AI-related capital spending keeps trailing free cash flow under pressure.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3