On Thursday, July 30, Amazon Inc.(AMZN) released its Q2 2026 earnings report. Given its crucial position as a Mag 7 mega-cap straddling both tech and e-commerce, Amazon’s earnings reports are usually closely watched by the broader investing community.
Key Takeaways:
- Amazon reported its Q2 2026 earnings report on Thursday, which widely outperformed analyst expectations.
- The Mag 7 mega-cap overshot expectations in earnings per share by over $3, and reported revenue of $200.6 billion — 20% higher than 2025’s numbers.
- There are many ways for advisors to capitalize on Amazon’s momentum, be it through a thematic fund like the Amplify Online Retail ETF (IBUY) or a value approach like State Street SPDR Portfolio S&P 500 Value ETF (SPYV).
Amazon resoundingly outperformed Q2 expectations across the board. Earnings per share came in at $5.75 — $3 higher than what many analysts had anticipated. Net sales reached $200.6 billion — 20% higher than last year’s numbers and again outperforming analyst expectations.
Amazon Web Services cloud computing platform was another key area of outperformance. The company reported that AWS generated $42.2 billion for the quarter, topping expectations by nearly $2 billion.
Amazon’s AI Investing is Paying Off
This development is particularly critical, as it addresses widespread skepticism about whether the tech industry’s relentless AI investing is going to pay off. Judging from Amazon’s latest results, the company’s AI investments are certainly proving worthwhile in near-term gains.
“AWS is booming, growing 36.7% year-over-year in Q2 — our fastest growth in 18 quarters — and our AI and Chips businesses each eclipsed run rates of more than $25 billion,” added Andy Jassy, CEO and President of Amazon. “In Stores, we again set record delivery speeds for Prime members in the first half of the year — over 40% more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And, Advertising had another strong quarter with 26% year-over-year growth. There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond.”
