Amazon reported net sales of $200.6 billion, representing an increase of 20% year-over-year. Diluted earnings per share rose to $5.75 from $1.68 in the prior-year quarter, primarily driven by a $53.4 billion pre-tax non-cash gain from the revaluation of its Anthropic investment, accelerating AWS revenue growth of 36.7% to $42.2 billion, and sustained momentum in high-margin advertising services.
Note: Amazon's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.
AWS accelerated to a $169 billion annualized revenue run rate, bolstered by widespread enterprise adoption of custom Trainium2 AI chips and Bedrock foundational model tooling, strengthening Amazon's enterprise cloud positioning amid surging demand for scalable AI inferencing and training infrastructure.
Below are key drivers of Amazon's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for Amazon at the top of the page.
Amazon is a diversified global technology leader operating across three principal segments: North America retail and services, International commerce, and Amazon Web Services (AWS), complemented by a rapidly expanding digital advertising platform.
AWS and digital advertising represent Amazon's primary value drivers due to superior operating margins and exceptional cash flow generation relative to retail operations.
AWS maintains the leading global market share in cloud infrastructure, delivering high recurring software and compute revenue through multi-year enterprise contracts and an expanding generative AI stack.
An extensive regionalized fulfillment and transportation network enables fast delivery speeds that sustain Prime consumer loyalty and reinforce third-party merchant service adoption.
Direct consumer purchase intent data positions Amazon as a dominant digital advertising ecosystem, driving high operating margins across sponsored product listings and connected video streaming assets.
Hyperscaler cloud demand is shifting toward cost-effective custom silicon and managed foundation model platforms, enabling AWS to capture long-term workload commitments with Trainium and Bedrock.
Amazon continues to regionalize inbound supply chains and deploy advanced warehouse robotics, lowering per-unit fulfillment costs and accelerating delivery speeds across key geographic markets.
Advertisers are allocating larger budgets to retail media networks, allowing Amazon to scale monetization across sponsored search, Prime Video, and live sports broadcasts.
