On July 30, 2026, Amazon reported results for the second quarter of 2026. Net sales were $200.6 billion, up 20 percent year over year, with operating income of $27.5 billion, up 43 percent, and net income of $62.6 billion, or $5.75 per diluted share. AWS segment sales were $42.2 billion, up 37 percent, the segment’s fastest growth in 18 quarters, putting AWS at an annualized revenue run rate of about $169 billion.
CEO Andy Jassy said “AWS is booming,” and disclosed that Amazon’s AI and Chips businesses had each passed run rates of more than $25 billion, both growing at triple-digit rates year over year. That is a rare direct disclosure of AI-specific revenue scale from a hyperscaler, and it separates the custom silicon line of business from the broader AI services line.
The offsetting number is cash. Trailing-twelve-month free cash flow swung to an outflow of $7.6 billion, which Amazon attributed primarily to a $66.1 billion increase in purchases of property and equipment “driven primarily by investments in artificial intelligence.” Alphabet reported negative quarterly free cash flow in the same earnings season for the same reason. Two of the largest cash-generating businesses in the world running negative free cash flow simultaneously, while both grow revenue at 20 percent or more, marks a distinct phase of the AI capital cycle: demand is real and being met, but the capacity to meet it is being paid for ahead of the revenue.