Amazon Breaks Records: Q2 2026 Revenue Surpasses $200B, AWS Soars by 37%
Amazon has made history with its latest quarter, reporting a $200.6 billion total revenue for Q2 2026. This is the first instance of the company exceeding the $200 billion threshold in a single quarter. Net sales witnessed a 20% year-over-year increase, and operating income soared 43% to reach $27.5 billion. These figures significantly surpassed Wall Street’s expectations of $196.47 billion in revenue.
However, the real star of the show was Amazon Web Services (AWS). AWS reported a revenue of $42.2 billion, marking a remarkable 36.7% year-over-year increase. This is the fastest growth rate AWS has seen in 18 quarters. The contracted cloud backlog of AWS skyrocketed from $364 billion to an astounding $496 billion within a single quarter, indicating a potential explosion in future demand. The operating margins for AWS also expanded to 39%, up 650 basis points year-over-year.
CEO Andy Jassy described AWS as “booming”. He pointed out that both Amazon’s AI services and its in-house chip businesses, including the Trainium and Graviton brands, have each exceeded $25 billion in annualized revenue run rates. These sectors are growing at triple-digit rates. Major AI labs such as Anthropic and OpenAI are among AWS’s top customers. Amazon also increased its full-year 2026 capital expenditure forecast to $220 billion, reflecting higher memory costs and continued AI infrastructure investment. The executives warned that AWS capacity for 2027 is already largely reserved, with some 2028 capacity already spoken for.
Amazon’s advertising services also performed exceptionally well, growing 26% year-over-year to $19.8 billion. Furthermore, same-day delivery has now expanded to 2,300 cities globally.
Source: About Amazon – Q2 2026 Earnings Report