- Amazon reported net sales of $200.6 billion and a profit of $62.6 billion, or $5.75 per share, compared to $1.82 per share and net sales of $196.43 billion expected by Wall Street.
- The tech giant expects $197 billion and $202 billion in net sales, or growth of 9% to 12%, and operating income between $22.5 billion and $26.5 billion in the third quarter.
- Shares jumped more than 6% in after-hours trading on Thursday
Shares of Amazon climbed over 9% in after-hours trading on Thursday after the tech giant smashed Wall Street expectations, more than tripling its second-quarter profit to $62.6 billion and increasing net sales 20% to $200.6 billion.
The quarterly profit included $53.4 billion in “non-operating pre-tax other income,” primarily from its investment in Anthropic. Meanwhile, its net sales were fueled by 16% growth in North America, 15% growth internationally and 37% growth in its Amazon Web Services unit.
Looking ahead, net sales are expected to grow 9% to 12% to somewhere between $197 billion and $202 billion in the third quarter, while operating income is expected to be between $22.5 billion and $26.5 billion, compared with $17.4 billion in the prior-year period. It also raised its capital expenditure forecast from $200 billion to $220 billion for 2026, the majority of which will be used to support AI and AWS.
“At this level of spend and higher, we have clear line of sight to strong financial returns,” Amazon CEO Andy Jassy said.
Amazon’s AWS AI and chips businesses both exceeded annual revenue run rates of $25 billion, or triple-digit percentage growth year over year. During the quarter, new AWS agreements were struck with Warner Bros. Discovery, Pinterest and the WNBA, among others.
Elsewhere, advertising services revenue, which includes sales to sellers, vendors, publishers, authors and others through programs such as sponsored ads, display and video advertising, continued to be a bright spot, growing 16% to $19.81 billion.
Net sales in the subscription services segment, which includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book and other non-Amazon Web Services subscription services, rose 12% to $13.73 billion.
Entertainment highlights during the quarter included “Off Campus” becoming Prime Video’s No. 3 top-viewed series debut ever with 36 million viewers for its series premiere in the first 12 days.
It also delivered a peak of 6.5 million U.S. viewers for Game 7 of the Eastern Conference Semifinals, outperforming the 2025 broadcast, and saw NBA viewership hit the highest average viewership on record in Europe, more than doubling year over year. Additionally, NASCAR on Prime Video averaged 2.3 million viewers in its second season and has attracted the youngest audience the last two years among broadcasters since 2017.
In April, Amazon Chief Financial Officer Brian Olsavsky said that Prime Video has grown into a “larger and profitable business in its own right.” The streaming service’s ad tier reaches over 315 million monthly active users globally, including more than 130 million in the United States alone.
Other countries where the ad tier is available include Australia, Austria, Brazil, Canada, France, Germany, India, Italy, Japan, Mexico, New Zealand, The Netherlands, Spain, Sweden and the U.K. In addition to its ad-supported tier, Prime Video users can pay a fee of $4.99 per month to upgrade to an ad-free experience — an increase from its previous $2.99 per month fee.
During the quarter, the company also expanded its AI-powered Ads Agent tool to 11 new countries so far, which simplifies planning, launching, and managing advertising campaigns and turns hours of setup and targeting into minutes. Advertisers using the tool have seen 8% lower cost-per-impression and 6% lower cost-per-acquisition than those that don’t use it, Amazon said.
Amazon Ads will host their annual UnBoxed advertising conference from Sept. 28 to 30 at the Moscone West Convention Center in San Francisco.
More to come…
