Amazon delivered a strong second quarter, with net sales rising 20% year-on-year to $200.6 billion, while its advertising business grew 26% and AWS clocked its fastest growth in 18 quarters.
“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,” said Andy Jassy, President and CEO, Amazon. He added that Stores set record Prime delivery speeds, with over 40% more items delivered same-day or overnight, while Advertising posted another strong quarter of 26% growth.
Operating income rose to $27.5 billion from $19.2 billion a year earlier, with AWS segment operating income at $16.6 billion, up from $10.2 billion. Net income increased to $62.6 billion, or $5.75 per diluted share, boosted by $53.4 billion in non-operating income primarily from Amazon’s investment in Anthropic.
Amazon said its AI business within AWS has crossed a $25 billion annual revenue run rate, with its custom chips business also surpassing that milestone. Trainium AI chip adoption grew among customers including Anthropic, OpenAI, Uber and Pinterest, while Amazon Bedrock expanded its foundation model offerings. The company also unveiled new AI tools, including enhancements to Bedrock AgentCore, Amazon Quick, and the Kiro coding agent, alongside a $1 billion investment in AWS Forward Deployed Engineering.
On advertising, Amazon expanded its AI-powered Ads Agent to 11 more countries, reporting lower cost-per-impression for advertisers. Prime Video also saw strong engagement, with Off Campus drawing 36 million viewers in 12 days.
Amazon expects Q3 net sales between $197–202 billion.
