Amazon Q2 Earnings Beat Expectations, AWS Growth Hits 18-Quarter High, Full-Year Capital Expenditure Raised to $220 Billion

According to Fortune magazine, Amazon released its Q2 2026 earnings report, showing strong overall performance, with after-hours stock price rising over 9%. In terms of core data, AWS cloud business revenue reached $42.2 billion, a year-over-year increase of 37%, marking the fastest growth in nearly 18 quarters; operating income was $16.6 billion, up 64% year-over-year, with profit margin rising to 39.4%; AWS customer contract backlog reached $496 billion. The company's overall net sales increased by 20% year-over-year to $200.6 billion, with operating income of $27.5 billion. Regarding outlook, CEO Andy Jassy stated that Amazon's 2026 capital expenditure expectation was raised from $200 billion to $220 billion, mainly driven by rising memory costs, but even so, capacity is expected to remain insufficient to meet all demand in the next two years. Jassy also pointed out that 85% of global IT spending is still on-premises, the cloud migration wave is far from over, and AWS is winning the "largest share" of enterprise migration plans.