revenue $200.6B, net income $62.6B. Amazon Q2: AWS growth accelerates to 37%, net income soars 245% on Anthropic gains

AWS revenue growth more than doubled year-over-year, from 17% to 37% in Q2 and from 17% to 33% for the six months. This is a significant acceleration in the company's highest-margin segment.

Consolidated operating income grew 43% year-over-year in Q2 and 37% for the six months, driven primarily by AWS and North America. The absolute dollar increase of $8.3 billion in Q2 is substantial.

Amazon discloses a new $50 billion total commitment to OpenAI, with $28.7 billion invested in the first half of 2026 and the remaining $21.3 billion funded after quarter-end. This is a major strategic investment in a key AI competitor.

Amazon discloses a new $10 billion investment in Anthropic nonvoting preferred stock in Q2 2026, adding to its existing convertible note investments. This deepens Amazon's AI partnership with Anthropic.

Capital expenditures nearly doubled year-over-year, from $31.4 billion to $53.1 billion in Q2 and from $55.6 billion to $96.3 billion for the six months, reflecting massive investment in AWS infrastructure and fulfillment capacity.

Trailing twelve-month free cash flow turned negative at -$7.6 billion, down from +$18.2 billion a year earlier, as capital expenditures more than offset operating cash flow growth. This is a significant deterioration in cash generation.

Other income surged to $53.4 billion in Q2 2026 from $1.1 billion a year earlier, driven by upward adjustments on Anthropic preferred stock and gains on convertible note conversions. This is a massive non-operating gain.

Income tax provision nearly quadrupled to $27.8 billion, driven by a $15.9 billion discrete tax expense on Anthropic investment gains. This significantly reduces net income despite the large other income gains.

Amazon discloses receiving tariff refunds under the IEEPA in Q2 2026, which partially offset cost of sales. This is a new disclosure related to trade policy developments.

Amazon discloses net unrealized gains on energy derivative contracts in Q2 2026, primarily related to AWS. This is a new disclosure that could introduce volatility in technology and infrastructure costs.

Amazon significantly increased debt issuance, raising $82.4 billion in the first half of 2026 compared to $4.7 billion a year earlier, likely to fund its massive AI investments and capital expenditures.

Cash and marketable securities increased to $123.0 billion from $93.2 billion a year earlier, reflecting the large debt issuance and operating cash flow, despite heavy investment spending.

The current filing explicitly states expectations for continued additional AI investments, while the baseline only mentioned general macroeconomic factors. This signals a more aggressive AI investment posture.

Q3 2026 guidance implies slower revenue growth of 9-12% compared to 10-13% a year earlier, though the absolute dollar range is higher. The guidance also notes Prime Day timing impacts.

Q3 2026 operating income guidance is significantly higher at $22.5-26.5 billion versus $15.5-20.5 billion a year earlier, reflecting strong profitability momentum.

Amazon significantly expanded its relationship with Anthropic, investing $5.0 billion in Series G preferred stock, amending its commercial arrangement, and establishing a $20.0 billion financing facility. This is a major new strategic commitment not present in the prior year's notes.

Amazon recognized massive unrealized gains of $50.5 billion in Q2 2026 and $62.8 billion for the first half of 2026 from its Anthropic preferred stock, driven by observable price changes. These gains are a major driver of the surge in net income.

AWS expanded its OpenAI commitment by $100 billion over 8 years, bringing the total to $138 billion. This is a massive new customer contract that significantly increases AWS's future revenue backlog.

AWS expanded its Anthropic commitment by over $100 billion over 10 years, adding to the OpenAI expansion. These two deals represent over $200 billion in new AWS commitments.

Amazon issued $37.0 billion of U.S. dollar-denominated notes in March 2026, a major new debt offering. This is part of a significant increase in long-term debt from $65.6 billion to $128.9 billion.

Amazon issued €14.5 billion of Euro-denominated notes in March 2026, adding to its foreign currency debt. This is part of the company's aggressive debt financing in 2026.

Amazon issued CHF2.8 billion of Swiss franc-denominated notes in May 2026, further diversifying its debt portfolio. This is a new issuance not present in the prior year.

Amazon issued C$14.0 billion of Canadian dollar-denominated notes in June 2026, adding to its foreign currency debt. This is a new issuance not present in the prior year.

Amazon entered into a new $17.5 billion delayed draw term loan in June 2026, providing additional liquidity. This is a new financing arrangement not present in the prior year.

Amazon received $640 million in tariff refunds in Q2 2026, which reduced cost of sales and boosted North America segment profitability. This is a new disclosure not present in the prior year.

Amazon disclosed significant energy contract derivative positions totaling 270 million megawatt-hours with a 15-year average remaining duration. This is a new disclosure reflecting the company's growing energy commitments for data centers.

Amazon designated $20.7 billion of foreign currency debt as net investment hedges, a new hedging strategy to manage currency risk. This is a new disclosure not present in the prior year.

Amazon's unrecognized performance obligations surged to $496 billion, up from $195 billion in the prior year, driven by the massive AWS customer commitments. This represents a huge future revenue backlog.

Amazon's income tax provision surged to $27.8 billion, including $15.9 billion of discrete tax expense from Anthropic valuation gains. This is a major new tax item not present in the prior year.

Amazon disclosed a new IRS notice that will significantly reduce its 2024 and 2025 cash taxes paid. This is a new tax development not present in the prior year.

Amazon disclosed a new ITC investigation filed by Xockets in May 2026, alleging patent infringement by AWS products. This is a new legal proceeding not present in the prior year.

Amazon disclosed new class action litigation status in Canada, the UK, and the US, including certified class actions. This is a new disclosure not present in the prior year.

AWS segment assets surged from $252.6 billion to $350.2 billion, reflecting massive infrastructure investment. This is a new disclosure showing AWS's rapid expansion.

AWS property and equipment additions more than doubled to $48.6 billion in Q2 2026 and $90.1 billion for the first half, reflecting massive data center investment. This is a new disclosure showing AWS's aggressive expansion.

AWS depreciation and amortization expense nearly doubled to $8.1 billion in Q2 2026 and $15.4 billion for the first half, reflecting the surge in infrastructure assets. This is a new disclosure showing the cost of AWS's expansion.

Amazon's operating cash flow surged to $45.4 billion in Q2 2026 and $71.4 billion for the first half, up from $32.5 billion and $49.5 billion respectively. This is a new disclosure showing strong cash generation.

Amazon's capital expenditures surged to $54.2 billion in Q2 2026 and $98.4 billion for the first half, up from $32.2 billion and $57.2 billion respectively. This is a new disclosure showing massive infrastructure investment.

Amazon raised $13.6 billion in long-term debt in Q2 2026 and $67.0 billion for the first half, up from zero and $746 million respectively. This is a new disclosure showing aggressive debt financing.

Amazon's total assets surged from $818.0 billion to $1.095 trillion, driven by massive investments in property, equipment, and other assets. This is a new disclosure showing the company's rapid expansion.

Amazon's long-term debt nearly doubled from $65.6 billion to $128.9 billion, reflecting the massive debt issuance in 2026. This is a new disclosure showing the company's increased leverage.

Amazon's stockholders' equity surged from $411.1 billion to $551.6 billion, driven by massive net income and other comprehensive income. This is a new disclosure showing the company's strengthened balance sheet.

Amazon's accumulated other comprehensive income surged from $28.2 billion to $66.3 billion, driven by unrealized gains on available-for-sale debt securities. This is a new disclosure showing the impact of Anthropic investments.

Amazon's retained earnings surged from $250.5 billion to $343.4 billion, driven by massive net income. This is a new disclosure showing the company's profitability.

Amazon's cash and cash equivalents decreased from $86.8 billion to $78.2 billion, despite strong operating cash flow, due to massive investments. This is a new disclosure showing the company's capital allocation.

Amazon's accounts receivable surged from $67.7 billion to $88.1 billion, reflecting strong sales growth. This is a new disclosure showing the company's revenue momentum.

Amazon's property and equipment surged from $357.0 billion to $446.0 billion, reflecting massive infrastructure investment. This is a new disclosure showing the company's expansion.

Amazon's other assets more than doubled from $122.6 billion to $284.1 billion, driven by Anthropic investments and other items. This is a new disclosure showing the company's investment portfolio.

Amazon's other long-term liabilities more than doubled from $36.0 billion to $79.6 billion, driven by energy contracts and other items. This is a new disclosure showing the company's growing obligations.

Amazon's total liabilities and stockholders' equity surged from $818.0 billion to $1.095 trillion, reflecting massive balance sheet growth. This is a new disclosure showing the company's expansion.

Amazon's net income surged from $18.2 billion to $62.6 billion in Q2 2026 and from $35.3 billion to $92.9 billion for the first half, driven by Anthropic gains and strong operations. This is a new disclosure showing the company's profitability.

Amazon's operating income surged from $19.2 billion to $27.5 billion in Q2 2026 and from $37.6 billion to $51.3 billion for the first half, reflecting strong segment performance. This is a new disclosure showing the company's profitability.

Amazon's total net sales surged from $167.7 billion to $200.6 billion in Q2 2026 and from $323.4 billion to $382.1 billion for the first half, reflecting strong growth across all segments. This is a new disclosure showing the company's revenue momentum.

AWS segment revenue surged from $30.9 billion to $42.2 billion in Q2 2026 and operating income from $10.2 billion to $16.6 billion, reflecting strong cloud demand. This is a new disclosure showing AWS's growth.

North America segment revenue increased from $100.1 billion to $116.2 billion in Q2 2026 and operating income from $7.5 billion to $9.1 billion, reflecting strong retail growth. This is a new disclosure showing the segment's performance.

International segment revenue increased from $36.8 billion to $42.2 billion in Q2 2026 and operating income from $1.5 billion to $1.7 billion, reflecting international growth. This is a new disclosure showing the segment's performance.

Amazon's advertising services revenue surged from $15.7 billion to $19.8 billion in Q2 2026 and from $29.6 billion to $37.1 billion for the first half, reflecting strong ad growth. This is a new disclosure showing the company's advertising momentum.

Amazon's third-party seller services revenue increased from $40.3 billion to $46.8 billion in Q2 2026 and from $76.9 billion to $88.4 billion for the first half, reflecting strong marketplace growth. This is a new disclosure showing the company's seller ecosystem.

Amazon's subscription services revenue increased from $12.2 billion to $13.7 billion in Q2 2026 and from $23.9 billion to $27.2 billion for the first half, reflecting Prime growth. This is a new disclosure showing the company's subscription momentum.

Amazon's online stores revenue increased from $61.5 billion to $70.4 billion in Q2 2026 and from $118.9 billion to $134.7 billion for the first half, reflecting strong e-commerce growth. This is a new disclosure showing the company's retail momentum.

Amazon's basic earnings per share surged from $1.71 to $5.82 in Q2 2026 and from $3.32 to $8.64 for the first half, reflecting the massive increase in net income. This is a new disclosure showing the company's profitability.

Amazon's diluted earnings per share surged from $1.68 to $5.75 in Q2 2026 and from $3.27 to $8.53 for the first half, reflecting the massive increase in net income. This is a new disclosure showing the company's profitability.

Amazon's total stockholders' equity surged from $333.8 billion to $551.6 billion, driven by massive net income and other comprehensive income. This is a new disclosure showing the company's strengthened balance sheet.

Amazon's accumulated other comprehensive income surged from $2.4 billion to $66.3 billion, driven by unrealized gains on available-for-sale debt securities. This is a new disclosure showing the impact of Anthropic investments.

Amazon recognized unrealized gains of $42.0 billion on available-for-sale debt securities in Q2 2026, driven by Anthropic convertible notes. This is a new disclosure showing the impact of Anthropic investments.

Amazon reclassified $3.3 billion of gains from accumulated other comprehensive income to net income in the first half of 2026, related to Anthropic convertible notes. This is a new disclosure showing the impact of Anthropic investments.

Amazon's other comprehensive income surged from $3.3 billion to $41.4 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the impact of Anthropic investments.

Amazon's comprehensive income surged from $21.5 billion to $104.1 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the impact of Anthropic investments.

Amazon's cash paid for income taxes decreased from $4.8 billion to $2.7 billion in Q2 2026, reflecting the IRS notice and tax benefits. This is a new disclosure showing the company's tax position.

Amazon's property and equipment acquired but not yet paid surged from a decrease of $1.6 billion to an increase of $10.7 billion in Q2 2026, reflecting massive capital expenditures. This is a new disclosure showing the company's expansion.

Amazon's marketable equity securities valuation gains surged from $388 million to $1.3 billion in Q2 2026, reflecting investment performance. This is a new disclosure showing the company's investment portfolio.

Amazon's equity warrant valuation gains surged from $590 million to $1.4 billion in Q2 2026, reflecting investment performance. This is a new disclosure showing the company's investment portfolio.

Amazon's reclassification adjustments for gains on available-for-sale debt securities increased from $22 million to zero in Q2 2026, but from $3.3 billion to $4.5 billion for the first half, reflecting Anthropic conversions. This is a new disclosure showing the impact of Anthropic investments.

Amazon's upward adjustments for private company investments surged from $49 million to $50.5 billion in Q2 2026, driven by Anthropic. This is a new disclosure showing the impact of Anthropic investments.

Amazon's other income surged from $1.1 billion to $53.4 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the impact of Anthropic investments.

Amazon's customer receivables surged from $40.4 billion to $49.2 billion, reflecting strong sales growth. This is a new disclosure showing the company's revenue momentum.

Amazon's video and music expense increased from $5.1 billion to $6.9 billion in Q2 2026, reflecting higher content spending. This is a new disclosure showing the company's content strategy.

Amazon's performance obligations surged to $496 billion, up from $195 billion in the prior year, driven by AWS customer commitments. This is a new disclosure showing the company's future revenue backlog.

Amazon increased its total investment in Anthropic convertible notes to $8.0 billion, up from $5.3 billion in the prior year. This is a new disclosure showing the company's investment in Anthropic.

Amazon converted a portion of its Anthropic convertible notes to nonvoting preferred stock in Q1 2026, following a similar conversion in Q1 2025. This is a new disclosure showing the company's investment in Anthropic.

Amazon invested $5.0 billion in Anthropic Series G preferred stock in Q2 2026, a new investment. This is a new disclosure showing the company's investment in Anthropic.

Amazon established a $20.0 billion financing facility for Anthropic, a new arrangement. This is a new disclosure showing the company's investment in Anthropic.

Amazon invested an additional $5.0 billion in Anthropic Series H preferred stock in Q2 2026, reducing the facility to $15.0 billion. This is a new disclosure showing the company's investment in Anthropic.

Amazon recognized massive unrealized gains of $50.5 billion in Q2 2026 and $62.8 billion for the first half from its Anthropic preferred stock. This is a new disclosure showing the impact of Anthropic investments.

Amazon's equity investments in private companies surged from $989 million to $6.1 billion, driven by Anthropic. This is a new disclosure showing the company's investment portfolio.

Amazon disclosed the Xockets patent infringement complaints filed in June 2025, which were not present in the prior year's notes. This is a new disclosure showing the company's legal proceedings.

Amazon disclosed a new ITC investigation filed by Xockets in May 2026, alleging patent infringement by AWS products. This is a new disclosure showing the company's legal proceedings.

Amazon disclosed new class action litigation status in Canada, the UK, and the US, including certified class actions. This is a new disclosure showing the company's legal proceedings.

Amazon's unsecured senior notes outstanding surged to $132.1 billion, up from $55.3 billion in the prior year, reflecting massive debt issuance. This is a new disclosure showing the company's debt position.

Amazon's total face value of long-term debt surged from $68.8 billion to $133.0 billion, reflecting massive debt issuance. This is a new disclosure showing the company's debt position.

Amazon's debt fair value surged from $61.1 billion to $123.8 billion, reflecting the massive debt issuance. This is a new disclosure showing the company's debt position.

Amazon issued an additional $25.0 billion of debt after June 30, 2026, bringing total debt issuance to over $100 billion in 2026. This is a new disclosure showing the company's aggressive debt financing.

Amazon entered into a new $17.5 billion delayed draw term loan in June 2026, providing additional liquidity. This is a new disclosure showing the company's liquidity management.

Amazon's beginning accumulated other comprehensive income surged from a loss of $914 million to a gain of $24.9 billion, reflecting Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's other comprehensive income surged from $3.3 billion to $41.4 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's ending accumulated other comprehensive income surged from $2.4 billion to $66.3 billion, driven by Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's net income surged from $18.2 billion to $62.6 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's ending retained earnings surged from $208.2 billion to $343.4 billion, driven by massive net income. This is a new disclosure showing the company's equity.

Amazon's total stockholders' equity surged from $333.8 billion to $551.6 billion, driven by massive net income and other comprehensive income. This is a new disclosure showing the company's equity.

Amazon's beginning accumulated other comprehensive income surged from a loss of $914 million to a gain of $24.9 billion, reflecting Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's available-for-sale debt securities beginning balance surged from $3.7 billion to $27.7 billion, reflecting Anthropic gains. This is a new disclosure showing the company's equity.

Amazon recognized unrealized gains of $42.0 billion on available-for-sale debt securities in Q2 2026, driven by Anthropic convertible notes. This is a new disclosure showing the company's equity.

Amazon reclassified $3.3 billion of gains from accumulated other comprehensive income to net income in the first half of 2026, related to Anthropic convertible notes. This is a new disclosure showing the company's equity.

Amazon's available-for-sale debt securities ending balance surged from $3.7 billion to $69.6 billion, driven by Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's total accumulated other comprehensive income surged from $2.4 billion to $66.3 billion, driven by Anthropic gains. This is a new disclosure showing the company's equity.

Amazon's income tax provision surged to $27.8 billion, including $15.9 billion of discrete tax expense from Anthropic valuation gains. This is a new disclosure showing the company's tax position.

Amazon disclosed a new IRS notice that will significantly reduce its 2024 and 2025 cash taxes paid. This is a new disclosure showing the company's tax position.

Amazon's cash paid for income taxes decreased from $4.8 billion to $2.7 billion in Q2 2026, reflecting the IRS notice and tax benefits. This is a new disclosure showing the company's tax position.

North America segment revenue increased from $100.1 billion to $116.2 billion in Q2 2026 and operating income from $7.5 billion to $9.1 billion, reflecting strong retail growth. This is a new disclosure showing the segment's performance.

International segment revenue increased from $36.8 billion to $42.2 billion in Q2 2026 and operating income from $1.5 billion to $1.7 billion, reflecting international growth. This is a new disclosure showing the segment's performance.

AWS segment revenue surged from $30.9 billion to $42.2 billion in Q2 2026 and operating income from $10.2 billion to $16.6 billion, reflecting strong cloud demand. This is a new disclosure showing the segment's performance.

Amazon's consolidated revenue surged from $167.7 billion to $200.6 billion in Q2 2026 and operating income from $0.2M to $0.4M, reflecting strong growth. This is a new disclosure showing the company's performance.

Amazon's total non-operating income surged from $1.7 billion to $53.4 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the company's performance.

Amazon's provision for income taxes surged from $2.7 billion to $18.2 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the company's performance.

Amazon's net income surged from $18.2 billion to $62.6 billion in Q2 2026, driven by Anthropic gains. This is a new disclosure showing the company's performance.

Amazon's online stores revenue increased from $61.5 billion to $70.4 billion in Q2 2026, reflecting strong e-commerce growth. This is a new disclosure showing the company's revenue mix.

Amazon's third-party seller services revenue increased from $40.3 billion to $46.8 billion in Q2 2026, reflecting strong marketplace growth. This is a new disclosure showing the company's revenue mix.

Amazon's advertising services revenue surged from $15.7 billion to $19.8 billion in Q2 2026, reflecting strong ad growth. This is a new disclosure showing the company's revenue mix.

Amazon's subscription services revenue increased from $12.2 billion to $13.7 billion in Q2 2026, reflecting Prime growth. This is a new disclosure showing the company's revenue mix.

Amazon's AWS revenue surged from $30.9 billion to $42.2 billion in Q2 2026, reflecting strong cloud demand. This is a new disclosure showing the company's revenue mix.

Amazon's AWS segment assets surged from $252.6 billion to $350.2 billion, reflecting massive infrastructure investment. This is a new disclosure showing the company's segment assets.

Amazon's corporate assets surged from $247.8 billion to $411.2 billion, reflecting Anthropic investments and other items. This is a new disclosure showing the company's segment assets.

Amazon's AWS property and equipment surged from $190.1 billion to $263.8 billion, reflecting massive infrastructure investment. This is a new disclosure showing the company's segment assets.

Amazon's North America net additions to property and equipment increased from $11.3 billion to $12.1 billion in Q2 2026, reflecting investment. This is a new disclosure showing the company's capital expenditures.

Amazon's AWS net additions to property and equipment surged from $16.0 billion to $48.6 billion in Q2 2026, reflecting massive infrastructure investment. This is a new disclosure showing the company's capital expenditures.

Amazon's AWS depreciation and amortization surged from $4.8 billion to $8.1 billion in Q2 2026, reflecting higher asset base. This is a new disclosure showing the company's depreciation.

Amazon added explicit mention of artificial intelligence as a technology that facilitates competitive entry, reflecting the growing role of AI in e-commerce competition. The change is descriptive but signals management's heightened focus on AI-driven competitive threats.

Amazon now specifically calls out automation, artificial intelligence, and machine learning technologies as areas where investment returns may not meet expectations. This is a more explicit acknowledgment of the financial risk tied to its AI and automation spending.

Amazon added that security measures may be circumvented by developing technologies such as artificial intelligence, acknowledging AI as a new vector for security threats.

Amazon now explicitly mentions competition for talent in artificial intelligence and machine learning technologies, highlighting the intensifying war for AI expertise.

Amazon added a new disclosure about facing tax and other challenges in Italy, and slightly reworded the description of open investigations to specify 'competition-related or consumer protection rules or regulations'. The Italy mention is a new, specific regulatory risk.

Amazon added disclosure that it issues notes in foreign currencies and that foreign-denominated note balances and payments are also exposed to exchange rate fluctuations. This expands the scope of the foreign exchange risk factor.

Amazon added that its expansion includes adopting and utilizing artificial intelligence and machine learning technologies, and clarified that infrastructure scaling includes technology infrastructure. This reflects the growing operational complexity from AI adoption.

Amazon added a new disclosure about facing tax and other challenges in Italy, and slightly reworded the description of open investigations to specify 'competition-related or consumer protection rules or regulations'. The Italy mention is a new, specific regulatory risk.