Amazon revenue skyrockets 20% to $200.6 billion

• Amazon reported second-quarter 2026 net sales of $200.6 billion, up 20% year over year.
• AWS revenue increased 37% to $42.2 billion, while operating income reached $27.5 billion.
• The company reported higher AI-related investment spending, which contributed to lower free cash flow.

Amazon.com (NASDAQ:AMZN) reported second-quarter 2026 net sales of $200.6 billion, up 20% year over year, driven by growth across North America, International and Amazon Web Services.

Operating income increased to $27.5 billion from $19.2 billion, while net income rose to $62.6 billion, or $5.75 per diluted share, from $18.2 billion, or $1.68 per diluted share.

Amazon Web Services revenue increased 37% to $42.2 billion, with AWS operating income reaching $16.6 billion compared with $10.2 billion a year earlier, while North America sales increased 16% to $116.2 billion.

The company reported higher quarterly earnings and updated investors on its AI investment plans.

Operating cash flow increased 33% to $161.4 billion for the trailing twelve months ended June 30, 2026, while free cash flow declined to an outflow of $7.6 billion.

Amazon reported that the decline in free cash flow was primarily related to a $66.1 billion year-over-year increase in purchases of property and equipment, net of proceeds and incentives, largely reflecting investments in artificial intelligence.