Amazon (NASDAQ: AMZN) posts $181.5B Q1 2026 revenue and strong AWS growth
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Amazon.com, Inc. reported strong first quarter 2026 results, with broad-based growth and rising profitability. Net sales rose 17% to $181.5 billion from $155.7 billion a year earlier, or 15% excluding a $2.9 billion favorable foreign exchange impact. AWS remained the main growth engine, with segment sales up 28% to $37.6 billion and operating income increasing to $14.2 billion from $11.5 billion.
North America net sales increased 12% to $104.1 billion and International sales grew 19% to $39.8 billion, with both segments expanding operating income. Consolidated operating income rose to $23.9 billion from $18.4 billion, while net income jumped to $30.3 billion, or $2.78 per diluted share, compared with $17.1 billion, or $1.59 per diluted share, helped by $16.8 billion of pre-tax gains from investments in Anthropic.
Operating cash flow for the trailing twelve months climbed 30% to $148.5 billion, but free cash flow fell to $1.2 billion from $25.9 billion, driven by a $59.3 billion increase in property and equipment purchases primarily related to artificial intelligence investments. For second quarter 2026, Amazon expects net sales of $194.0 billion to $199.0 billion, up 16% to 19% year-over-year, and operating income between $20.0 billion and $24.0 billion, versus $19.2 billion in second quarter 2025.
Positive
- Strong revenue and profit growth: Q1 2026 net sales rose 17% to $181.5 billion and net income increased to $30.3 billion, or $2.78 per diluted share, from $17.1 billion, or $1.59 per diluted share, supported by higher operating income and investment gains.
- AWS acceleration and margin strength: AWS segment sales grew 28% year-over-year to $37.6 billion with operating income rising to $14.2 billion, while consolidated operating margin improved to 13.1% for the quarter and 11.5% on a trailing-twelve-month basis.
- Confident forward guidance: Second quarter 2026 outlook calls for net sales between $194.0 billion and $199.0 billion, implying 16%-19% year-over-year growth, and operating income of $20.0-$24.0 billion, above the $19.2 billion achieved in second quarter 2025.
Negative
- Free cash flow pressure from heavy AI capex: Trailing-twelve-month free cash flow declined to $1.2 billion from $25.9 billion as purchases of property and equipment, net of proceeds and incentives, increased by $59.3 billion, primarily reflecting large-scale investments in artificial intelligence infrastructure.
Insights
Amazon delivered strong Q1 2026 growth, expanding margins and raising expectations for Q2.
Amazon posted Q1 2026 net sales of $181.5 billion, up 17%, with operating income rising to $23.9 billion from $18.4 billion. Net income surged to $30.3 billion, aided by $16.8 billion of non-operating gains from investments in Anthropic.
Core operations also strengthened. North America segment operating income increased to $8.3 billion from $5.8 billion, International to $1.4 billion from $1.0 billion, and AWS to $14.2 billion from $11.5 billion. Trailing-twelve-month operating margin improved to 11.5% of worldwide net sales.
Guidance for Q2 2026 targets net sales between $194.0 billion and $199.0 billion, implying 16%-19% year-over-year growth, and operating income of $20.0-$24.0 billion versus $19.2 billion a year earlier. This outlook, which assumes Prime Day in the quarter, signals continued momentum but will depend on macro conditions, FX, and execution across retail and cloud.
AWS and AI investments are scaling rapidly, boosting growth while pressuring free cash flow.
AWS Q1 2026 net sales increased 28% to $37.6 billion, its fastest growth in 15 quarters, with operating income reaching $14.2 billion. Management highlighted a chips business above a $20 billion revenue run rate and Advertising exceeding $70 billion in trailing-twelve-month revenue.
Amazon is committing large capital to artificial intelligence infrastructure. Free cash flow over the trailing twelve months declined to $1.2 billion from $25.9 billion, primarily due to a $59.3 billion increase in property and equipment purchases, mainly AI-related. The cash outlay expands capacity for Trainium chips, NVIDIA GPUs, and AI services such as Amazon Bedrock, Amazon Quick, and Amazon Bio Discovery.
New and expanded agreements with OpenAI, Anthropic, Meta, Uber, and others suggest growing demand for AI compute on AWS. Future results will reflect how effectively these AI and satellite connectivity investments, including Amazon Leo, convert into sustained high-margin revenue as deployments ramp after 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 net sales: $181.5 billion
Q1 2026 AWS net sales: $37.6 billion
Q1 2026 net income: $30.3 billion
+5 more
8 metrics
Q1 2026 net sales
$181.5 billion
Up from $155.7 billion in Q1 2025; 17% growth
Q1 2026 AWS net sales
$37.6 billion
Segment sales up 28% year-over-year
Q1 2026 net income
$30.3 billion
Versus $17.1 billion in Q1 2025
Q1 2026 diluted EPS
$2.78 per share
Up from $1.59 per diluted share in Q1 2025
Anthropic investment gains
$16.8 billion
Pre-tax gains included in Q1 2026 non-operating income
Operating cash flow TTM
$148.5 billion
Trailing twelve months ended March 31, 2026; up from $113.9 billion
Free cash flow TTM
$1.2 billion
Trailing twelve months; down from $25.9 billion year earlier
Q2 2026 net sales guidance
$194.0–$199.0 billion
Expected 16%-19% growth versus Q2 2025
Key Terms
free cash flow, non-GAAP financial measures, operating cash flow, segment operating income, +2 more
6 terms
free cash flow financial
"Free cash flow decreased to $1.2 billion for the trailing twelve months"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial measures regulatory
"additional information regarding the inclusion of non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
operating cash flow financial
"Operating cash flow increased 30% to $148.5 billion for the trailing twelve months"
Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.
segment operating income financial
"AWS segment operating income was $14.2 billion, compared with $11.5 billion"
Segment operating income is the profit a company earns from one specific part of its business after subtracting the costs of running that part but before interest, taxes and corporate-level items. For investors, it shows which divisions are actually generating operating profit and lets you compare the health and efficiency of different business “slices,” much like checking the cash a single store in a chain makes before company-wide overhead is applied.
foreign exchange rates financial
"Excluding the $2.9 billion favorable impact from year-over-year changes in foreign exchange rates"
Foreign exchange rates are the prices at which one country’s currency can be exchanged for another, like a price tag showing how many euros you get for one dollar. They matter to investors because they change the value of overseas earnings, investment returns and import/export costs — small swings can raise or cut profits and portfolio values much like a change in fuel price alters a travel budget.
trailing twelve months financial
"Operating cash flow increased 30% to $148.5 billion for the trailing twelve months"
Trailing twelve months is a rolling measure of a company’s financial performance that adds together the most recent four quarters of results to show how the business has done over the last 12 months, rather than a fixed fiscal year. Investors use it like checking a car’s last 12 months of fuel use to see current efficiency — it highlights recent trends, evens out seasonal swings, and provides an up-to-date basis for comparing and valuing companies.
Earnings Snapshot
Net sales: $181.5 billion · Guidance included
Q1 2026
Net sales
$181.5 billion
+17% year-over-year
Operating income
$23.9 billion
up from $18.4 billion in Q1 2025
Net income
$30.3 billion
up from $17.1 billion in Q1 2025
Diluted EPS
$2.78
up from $1.59 in Q1 2025
AWS net sales
$37.6 billion
+28% year-over-year
Guidance
For Q2 2026, Amazon expects net sales between $194.0 billion and $199.0 billion, representing 16%-19% year-over-year growth, and operating income between $20.0 billion and $24.0 billion, compared with $19.2 billion in Q2 2025, assuming Prime Day occurs in the quarter.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
_________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
_________________________
(Exact name of registrant as specified in its charter)
_________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including Zip Code)
(206 ) 266-1000
(Registrant’s telephone number, including area code)
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
Table of Contents
TABLE OF CONTENTS
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. | 3 | ||||
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. | 3 | ||||
SIGNATURES | 4 | ||||
| EXHIBIT 99.1 | |||||
| EXHIBIT 99.2 | |||||
Table of Contents
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 29, 2026, Amazon.com, Inc. announced its first quarter 2026 financial results. A copy of the press release containing the announcement is included as Exhibit 99.1 and additional information regarding the inclusion of non-GAAP financial measures in certain of Amazon.com, Inc.’s public disclosures, including its first quarter 2026 financial results announcement, is included as Exhibit 99.2. Both of these exhibits are incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Exhibit Number | Description | ||||
| 99.1 | Press Release dated April 29, 2026 announcing Amazon.com, Inc.’s First Quarter 2026 Financial Results. | ||||
| 99.2 | Information Regarding Non-GAAP Financial Measures. | ||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101). | ||||
3
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMAZON.COM, INC. (REGISTRANT) | ||||||||
| By: | /s/ Brian T. Olsavsky | |||||||
| Brian T. Olsavsky | ||||||||
| Senior Vice President and Chief Financial Officer | ||||||||
Dated: April 29, 2026
4
Exhibit 99.1
AMAZON.COM ANNOUNCES FIRST QUARTER RESULTS
SEATTLE—(BUSINESS WIRE) April 29, 2026—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2026.
•Net sales increased 17% to $181.5 billion in the first quarter, compared with $155.7 billion in first quarter 2025. Excluding the $2.9 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 15% compared with first quarter 2025.
•North America segment sales increased 12% year-over-year to $104.1 billion.
•International segment sales increased 19% year-over-year to $39.8 billion, or increased 11% excluding changes in foreign exchange rates.
•AWS segment sales increased 28% year-over-year to $37.6 billion.
•Operating income increased to $23.9 billion in the first quarter, compared with $18.4 billion in first quarter 2025.
•North America segment operating income was $8.3 billion, compared with $5.8 billion in first quarter 2025.
•International segment operating income was $1.4 billion, compared with $1.0 billion in first quarter 2025.
•AWS segment operating income was $14.2 billion, compared with $11.5 billion in first quarter 2025.
•Net income increased to $30.3 billion in the first quarter, or $2.78 per diluted share, compared with $17.1 billion, or $1.59 per diluted share, in first quarter 2025.
•First quarter 2026 net income includes pre-tax gains of $16.8 billion included in non-operating income from our investments in Anthropic.
•Operating cash flow increased 30% to $148.5 billion for the trailing twelve months, compared with $113.9 billion for the trailing twelve months ended March 31, 2025.
•Free cash flow decreased to $1.2 billion for the trailing twelve months, driven primarily by a year-over-year increase of $59.3 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow of $25.9 billion for the trailing twelve months ended March 31, 2025.
“We’re making customers’ lives easier and better every day across all our businesses, and their response is driving significant growth,” said Andy Jassy, President and CEO, Amazon. “AWS is growing 28% (our fastest growth in 15 quarters) on a very large base, our chips business topped a $20 billion revenue run rate (growing triple digits year-over-year), Advertising grew to over $70 billion in TTM revenue, and unit growth in our Stores reached 15% (the highest since the tail end of covid lockdowns). We also hit exciting milestones with delivery speed (more than 1 billion items same-day or overnight in 2026 and counting), Project Hail Mary (nearly $615 million at the box office to date and the second most successful non-sequel, non-franchise opening of recent memory), and Amazon Leo continues to resonate with prospective customers, with Delta Airlines the latest to sign on. We’re in the middle of some of the biggest inflections of our lifetime, we’re well positioned to lead, and I’m very optimistic about what’s ahead for our customers and Amazon.”
Some other highlights since the company’s last earnings announcement include that Amazon:
•Continued growing custom silicon business while also continuing to offer the broadest selection of compute options.
•Exceeded $20 billion annual revenue run rate for Amazon’s chips business—inclusive of Graviton, Trainium, and Nitro—which is growing triple-digit percentages year-over-year.
•Secured a commitment from OpenAI to consume approximately two gigawatts (GW) of Trainium capacity through AWS infrastructure to power its frontier models and advanced workloads, which begins ramping in 2027.
•Announced that Anthropic will secure up to five gigawatts (GW) of current and future generations of Amazon’s Trainium chips to train and power their advanced AI models.
•Landed 2.1 million+ AI chips over the past 12 months, more than half of which were Trainium, and announced one million+ NVIDIA GPUs to be deployed starting in 2026, giving customers the widest range of accelerated compute options.
•Announced a collaboration with Cerebras and plans to deliver through Amazon Bedrock the fastest AI inference speeds available for large language models, becoming the only cloud provider to offer a solution like this.
•Partnered with Uber to put Graviton4 chips to work on millions of daily rides and deliveries—matching riders with drivers in fractions of a second at lower cost—and leveraging Trainium3 to train the Al models that make every ride smarter over time.
•Signed an agreement with Meta, already an Amazon Bedrock customer at scale, to deploy tens of millions of AWS Graviton cores to power CPU-intensive workloads behind its agentic AI efforts, including real-time reasoning, code generation, and multi-step agent workflows.
•Announced new AWS agreements with OpenAI, Anthropic, Meta, NVIDIA, Uber, U.S. Bank, Fox Corporation, Southwest Airlines, U.S. Army, Bloomberg, Cerebras, AT&T, DTCC, Nokia, Fundamental, The National Geographic Society, NEURA Robotics, DXC, PGA TOUR, O2 Telefónica, NTT DOCOMO, Veolia, The Evri Group, Telenor, ModMed, Yotta Data Services, Parrot Analytics, U.S. Hunger, TGS, and more.
•Announced the preview of Amazon Bedrock Managed Agents, powered by OpenAI, a Stateful Runtime Environment available on Amazon Bedrock for AWS customers to build generative AI applications and agents at production scale.
•Announced OpenAI’s GPT-5.4 model is available to customers in limited preview on Amazon Bedrock, with GPT-5.5 coming soon.
•Announced the Amazon Quick desktop app, which can query email, calendar, Slack, local files, and several other applications to retrieve and summarize information, make recommendations, compose and send communications, and create agents that highlight or automatically do work. Users can keep refining their preferences and Quick’s advanced knowledge graph enables its AI agents to automatically learn from users’ interactions with others, becoming more personalized over time.
•Expanded Amazon Connect to include Connect Decisions, Connect Talent, Connect Customer, and Connect Health to help organizations transform supply chain operations, hiring, customer experience, and health care, without requiring teams to overhaul existing processes or become AI experts.
•Launched new capabilities for Amazon Bedrock AgentCore, AWS’s pioneering set of infrastructure building blocks for developers and companies to build secure, scalable agents that is now used to deploy an agent as frequently as every 10 seconds, including:
•AWS Agent Registry to help customers discover, share, and reuse AI agents, tools, and agent skills across an enterprise for secure, governed access to agents at scale.
•A new managed agent harness that allows customers to define the model, tools, and instructions an agent should use, and AgentCore automatically stitches together the infrastructure to create a running agent in minutes.
•The general availability of Policy in Amazon Bedrock AgentCore to control what agents can and cannot do, and of AgentCore Evaluations for automated quality assessments of agents.
•Announced the availability of Claude Mythos Preview, as part of Project Glasswing with Anthropic, in Amazon Bedrock. Claude Mythos Preview is a new class of AI model for cybersecurity and vulnerability detection that has been applied to critical AWS codebases and is available in gated research preview with enterprise-grade security controls.
•Announced availability of Claude Opus 4.7 in Amazon Bedrock—Anthropic’s most capable Opus model for coding, long-running agents, and professional work—which delivers enhanced privacy controls, broader regional availability, and improved throughput.
•Processed more tokens on Bedrock in the first quarter than all prior years combined, and Bedrock saw 170% growth in customer spend quarter-over-quarter.
•More than doubled the number of developers using Kiro quarter-over-quarter, and enterprise customer usage increased nearly tenfold.
•Launched Amazon Bio Discovery, an agentic AI application designed to accelerate drug discovery by giving scientists access to biological foundation models, an AI agent for experimental designs, and integrated lab partners for testing, which Memorial Sloan Kettering Cancer Center used to compress antibody design for potential pediatric cancer therapies from months to weeks.
•Shared that Prime Day will take place in most countries in June. Amazon’s annual shopping event delivers incredible savings to Prime members on millions of deals across more than 35 categories––from fashion and beauty to groceries, household essentials, and electronics.
•Expanded selection on Amazon.com, including more than 600 new notable brands, like Ted Baker, PAPATUI by Dwayne Johnson, Simpson Strong-Tie, Sun Mountain Golf, Kind Patches, ONDO, and Chosen Foods.
•Made Same-Day delivery even faster with new 1-hour and 3-hour delivery options on 90,000+ products in the U.S.—everything from paper towels and cleaning supplies to electronics. One-hour delivery is available in hundreds of cities and towns, and 3-hour delivery is in 2,000+ cities and towns.
•Launched availability of Amazon Now (ultra-fast delivery in 30-minutes or less) in parts of Tokyo and eight major cities in Brazil—bringing the total availability of Amazon Now to tens of millions of customers across nine countries—and plans to continue expanding the service in the U.S. and around the world this year.
•Introduced a new AI experience in Seller Central that dynamically generates a custom, personalized visualization of data, key insights, and scenarios tailored to the seller’s goals to help them take actions to grow their business.
•Launched “Join the chat,” a new feature in Amazon’s AI-powered “Hear the highlights,” that lets customers ask questions while listening to product summaries and get answers in real time. “Hear the highlights” has been used by millions of customers who have streamed over 40 million minutes of audio.
•Launched Health AI on the Amazon U.S. app and website, bringing a 24/7 AI-powered personal health agent backed by One Medical clinicians to customers. Health AI gives personalized health insights and guidance and takes action with permission, including providing instant care via messaging, booking appointments, and managing prescriptions. Virtual care visits have nearly tripled year-over-year, with a majority of those visits now via Health AI. No other major AI assistant enables care services in this way, and only Amazon offers up to five free virtual care visits through Prime.
•Announced plans to expand Same-Day Amazon Pharmacy delivery to nearly 4,500 U.S. cities and towns by year-end, with expanded GLP-1 selection, including Novo Nordisk’s Wegovy High Dose injectable and Eli Lilly and Company’s Zepbound KwikPen and Foundayo pill. In addition, Amazon launched a comprehensive GLP-1 Management Program through Amazon One Medical that integrates primary care, pharmacy, and virtual care options to help patients achieve lasting weight loss results.
•Introduced Sponsored Products and Brand Prompts in Rufus, Amazon’s AI shopping assistant. Prompts act as a virtual product expert, automatically surfacing relevant details and deepening shopper confidence at key moments in their shopping journey. Nearly 20% of shoppers who interact with a prompt in Rufus continue the conversation about that brand.
•Added Amazon Audiences for advertisers using Amazon Ads to buy advertising on Netflix, enabling brands to use Amazon’s proprietary shopping, streaming, and browsing signals, to reach relevant Netflix audiences and drive even stronger performance.
•Launched Creative Agent, an agentic AI solution for advertisers in Canada, France, Germany, India, Italy, Spain, and the UK. Creative Agent acts as a virtual creative partner, helping advertisers research, brainstorm, and generate full-funnel ad campaigns from concept to completion using conversational guidance and Amazon’s retail data.
•Generated nearly $615 million in global box office for Project Hail Mary to date, anchored by an $80 million+ U.S./Canada opening weekend—only the second non-sequel, non-franchise film in the last decade to exceed this mark.
•Debuted exclusive coverage of NBA SoFi Play-In Tournament, averaging nearly 2.8 million U.S. viewers on Prime Video across six exclusive broadcasts, up 18% compared to last year on cable.
•Announced planned acquisition of Globalstar, which will enable Amazon Leo to add direct-to-device services to its network, and that Amazon Leo will power satellite services for Apple iPhone and Apple Watch.
•Announced new customer agreements with Delta Air Lines to bring free, high-speed Amazon Leo-powered Wi-Fi to hundreds of aircraft beginning in 2028; Vodafone to extend mobile coverage across Europe and Africa; and the DP World Tour to provide satellite-powered connectivity across 42 professional golf tournaments annually.
•Completed its tenth launch of Amazon Leo’s satellites, bringing the number of satellites in orbit to 250+, with 20+ additional launches planned over the next year.
•Expanded Alexa+ to Mexico, the UK, Italy, and Spain and introduced new capabilities, including Alexa+ Personality Styles to customize how Alexa responds to questions and requests as well as Send to Alexa to share notebooks and documents from Kindle Scribe to Alexa.
•Began testing Zoox’s purpose-built robotaxi in Austin and Miami, expanded services in San Francisco and Las Vegas, and announced an agreement with Uber to bring Zoox robotaxis to the Uber app in Las Vegas and Los Angeles. Zoox has driven nearly 2 million miles and carried 350,000+ riders in its robotaxis.
•Continued making significant progress on safety—improving both Amazon’s Global Recordable Incident Rate and Global Lost Time Incident Rate by 14% year-over-year, and improving Global Recordable Incident Rate by 43% and Global Lost Time Incident Rate by 70% over the past six years.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of April 29, 2026, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below.
Second Quarter 2026 Guidance
•Net sales are expected to be between $194.0 billion and $199.0 billion, or to grow between 16% and 19% compared with second quarter 2025. This guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates.
•Operating income is expected to be between $20.0 billion and $24.0 billion, compared with $19.2 billion in second quarter 2025.
•This guidance assumes that Prime Day occurs in second quarter 2026.
•This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.
Conference Call Information
A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.
Forward-Looking Statements
These forward-looking statements are inherently difficult to predict. Actual results and outcomes could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, security incidents, system interruptions, government regulation and taxation, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.
Additional Information
Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| Three Months Ended March 31, | Twelve Months Ended March 31, | ||||||||||||||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||||||||||||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | $ | 82,312 | $ | 90,106 | $ | 73,332 | $ | 69,893 | |||||||||||||||
| OPERATING ACTIVITIES: | |||||||||||||||||||||||
| Net income | 17,127 | 30,255 | 65,944 | 90,798 | |||||||||||||||||||
| Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||||||||||||
| Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other | 14,262 | 18,945 | 55,373 | 70,439 | |||||||||||||||||||
| Stock-based compensation | 3,689 | 4,032 | 20,739 | 19,810 | |||||||||||||||||||
| Non-operating expense (income), net | (2,817) | (15,632) | (3,539) | (27,695) | |||||||||||||||||||
| Deferred income taxes | 507 | 12,798 | (3,203) | 23,761 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Inventories | (1,222) | 1,622 | (4,882) | (158) | |||||||||||||||||||
| Accounts receivable, net and other | 1,247 | (5,750) | (5,686) | (14,330) | |||||||||||||||||||
| Other assets | (3,402) | (3,811) | (15,184) | (16,041) | |||||||||||||||||||
| Accounts payable | (9,043) | (8,737) | 5,211 | 11,537 | |||||||||||||||||||
| Accrued expenses and other | (4,061) | (8,045) | (4,037) | (9,003) | |||||||||||||||||||
| Unearned revenue | 728 | 355 | 3,167 | (587) | |||||||||||||||||||
| Net cash provided by (used in) operating activities | 17,015 | 26,032 | 113,903 | 148,531 | |||||||||||||||||||
| INVESTING ACTIVITIES: | |||||||||||||||||||||||
| Purchases of property and equipment | (25,019) | (44,203) | (93,093) | (151,003) | |||||||||||||||||||
| Proceeds from property and equipment sales and incentives | 764 | 969 | 5,115 | 3,704 | |||||||||||||||||||
| Acquisitions, net of cash acquired, non-marketable investments, and other, net | 48 | (15,408) | (3,680) | (19,297) | |||||||||||||||||||
| Sales and maturities of marketable securities | 7,737 | 17,686 | 22,748 | 54,335 | |||||||||||||||||||
| Purchases of marketable securities | (13,333) | (23,256) | (37,373) | (64,693) | |||||||||||||||||||
| Net cash provided by (used in) investing activities | (29,803) | (64,212) | (106,283) | (176,954) | |||||||||||||||||||
| FINANCING ACTIVITIES: | |||||||||||||||||||||||
| Proceeds from short-term debt, and other | 1,815 | 6,018 | 6,619 | 13,523 | |||||||||||||||||||
| Repayments of short-term debt, and other | (2,082) | (6,109) | (6,738) | (12,453) | |||||||||||||||||||
| Proceeds from long-term debt | 746 | 53,441 | 746 | 68,368 | |||||||||||||||||||
| Repayments of long-term debt | — | — | (8,852) | (5,021) | |||||||||||||||||||
| Principal repayments of finance leases | (410) | (468) | (1,683) | (1,615) | |||||||||||||||||||
| Principal repayments of financing obligations | (116) | (115) | (695) | (327) | |||||||||||||||||||
| Net cash provided by (used in) financing activities | (47) | 52,767 | (10,603) | 62,475 | |||||||||||||||||||
| Foreign currency effect on cash, cash equivalents, and restricted cash | 416 | (1) | (456) | 747 | |||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (12,419) | 14,586 | (3,439) | 34,799 | |||||||||||||||||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ | 69,893 | $ | 104,692 | $ | 69,893 | $ | 104,692 | |||||||||||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||||||||||||||
| Cash paid for interest on debt, net of capitalized interest | $ | 236 | $ | 274 | $ | 1,825 | $ | 1,496 | |||||||||||||||
| Cash paid for operating leases | 3,562 | 4,315 | 12,571 | 15,791 | |||||||||||||||||||
| Cash paid for interest on finance leases | 71 | 102 | 284 | 326 | |||||||||||||||||||
| Cash paid for interest on financing obligations | 55 | 76 | 210 | 217 | |||||||||||||||||||
| Cash paid for income taxes, net of refunds | 877 | 1,323 | 12,727 | 8,741 | |||||||||||||||||||
| Assets acquired under operating leases | 4,321 | 6,239 | 15,992 | 21,848 | |||||||||||||||||||
| Property and equipment acquired under finance leases, net of remeasurements and modifications | 54 | 1,565 | 866 | 4,422 | |||||||||||||||||||
| Increase (decrease) in property and equipment acquired but not yet paid | 3,108 | 9,920 | 9,736 | 16,967 | |||||||||||||||||||
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2025 | 2026 | ||||||||||
| Net product sales | $ | 63,970 | $ | 71,304 | |||||||
| Net service sales | 91,697 | 110,215 | |||||||||
| Total net sales | 155,667 | 181,519 | |||||||||
| Operating expenses: | |||||||||||
| Cost of sales | 76,976 | 87,463 | |||||||||
| Fulfillment | 24,593 | 27,289 | |||||||||
| Technology and infrastructure | 22,994 | 29,567 | |||||||||
| Sales and marketing | 9,763 | 10,314 | |||||||||
| General and administrative | 2,628 | 2,587 | |||||||||
| Other operating expense (income), net | 308 | 447 | |||||||||
| Total operating expenses | 137,262 | 157,667 | |||||||||
| Operating income | 18,405 | 23,852 | |||||||||
| Interest income | 1,066 | 1,135 | |||||||||
| Interest expense | (541) | (800) | |||||||||
| Other income (expense), net | 2,749 | 15,647 | |||||||||
| Total non-operating income | 3,274 | 15,982 | |||||||||
| Income before income taxes | 21,679 | 39,834 | |||||||||
| Provision for income taxes | (4,553) | (9,560) | |||||||||
| Equity-method investment activity, net of tax | 1 | (19) | |||||||||
| Net income | $ | 17,127 | $ | 30,255 | |||||||
| Basic earnings per share | $ | 1.62 | $ | 2.82 | |||||||
| Diluted earnings per share | $ | 1.59 | $ | 2.78 | |||||||
| Weighted-average shares used in computation of earnings per share: | |||||||||||
| Basic | 10,603 | 10,743 | |||||||||
| Diluted | 10,793 | 10,874 | |||||||||
AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2025 | 2026 | ||||||||||
| Net income | $ | 17,127 | $ | 30,255 | |||||||
| Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments, net of tax of $(66) and $(13) | 1,535 | (764) | |||||||||
Unrealized gains (losses) on net investment hedging instruments, net of tax of $0 and $24 | — | (85) | |||||||||
| Available-for-sale debt securities: | |||||||||||
Change in net unrealized gains (losses), net of tax of $(11) and $(340) | 37 | 826 | |||||||||
Less: reclassification adjustment for net losses (gains) included in “Other income (expense), net,” net of tax of $809 and $1,142 | (2,454) | (3,337) | |||||||||
| Net change | (2,417) | (2,511) | |||||||||
Other, net of tax of $1 and $(2) | 2 | (2) | |||||||||
| Total other comprehensive income (loss) | (880) | (3,362) | |||||||||
| Comprehensive income | $ | 16,247 | $ | 26,893 | |||||||
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2025 | 2026 | ||||||||||
| North America | |||||||||||
| Net sales | $ | 92,887 | $ | 104,143 | |||||||
| Operating expenses | 87,046 | 95,876 | |||||||||
| Operating income | $ | 5,841 | $ | 8,267 | |||||||
| International | |||||||||||
| Net sales | $ | 33,513 | $ | 39,789 | |||||||
| Operating expenses | 32,496 | 38,365 | |||||||||
| Operating income | $ | 1,017 | $ | 1,424 | |||||||
| AWS | |||||||||||
| Net sales | $ | 29,267 | $ | 37,587 | |||||||
| Operating expenses | 17,720 | 23,426 | |||||||||
| Operating income | $ | 11,547 | $ | 14,161 | |||||||
| Consolidated | |||||||||||
| Net sales | $ | 155,667 | $ | 181,519 | |||||||
| Operating expenses | 137,262 | 157,667 | |||||||||
| Operating income | 18,405 | 23,852 | |||||||||
| Total non-operating income | 3,274 | 15,982 | |||||||||
| Provision for income taxes | (4,553) | (9,560) | |||||||||
| Equity-method investment activity, net of tax | 1 | (19) | |||||||||
| Net income | $ | 17,127 | $ | 30,255 | |||||||
| Segment Highlights: | |||||||||||
| Y/Y net sales growth: | |||||||||||
| North America | 8 | % | 12 | % | |||||||
| International | 5 | 19 | |||||||||
| AWS | 17 | 28 | |||||||||
| Consolidated | 9 | 17 | |||||||||
| Net sales mix: | |||||||||||
| North America | 60 | % | 57 | % | |||||||
| International | 21 | 22 | |||||||||
| AWS | 19 | 21 | |||||||||
| Consolidated | 100 | % | 100 | % | |||||||
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
(unaudited)
| December 31, 2025 | March 31, 2026 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 86,810 | $ | 101,816 | |||||||
| Marketable securities | 36,219 | 41,273 | |||||||||
| Inventories | 38,325 | 36,534 | |||||||||
| Accounts receivable, net and other | 67,729 | 75,532 | |||||||||
| Total current assets | 229,083 | 255,155 | |||||||||
| Property and equipment, net | 357,025 | 397,458 | |||||||||
| Operating leases | 86,054 | 88,741 | |||||||||
| Goodwill | 23,273 | 23,449 | |||||||||
| Other assets | 122,607 | 151,827 | |||||||||
| Total assets | $ | 818,042 | $ | 916,630 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 121,909 | $ | 124,749 | |||||||
| Accrued expenses and other | 75,520 | 71,120 | |||||||||
| Unearned revenue | 20,576 | 20,887 | |||||||||
| Total current liabilities | 218,005 | 216,756 | |||||||||
| Long-term lease liabilities | 87,339 | 90,814 | |||||||||
| Long-term debt | 65,648 | 119,074 | |||||||||
| Other long-term liabilities | 35,985 | 48,072 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) | — | — | |||||||||
Common stock ($0.01 par value; 100,000 shares authorized; 11,246 and 11,269 shares issued; 10,731 and 10,754 shares outstanding) | 112 | 113 | |||||||||
| Treasury stock, at cost | (7,837) | (7,837) | |||||||||
| Additional paid-in capital | 140,024 | 143,979 | |||||||||
| Accumulated other comprehensive income (loss) | 28,230 | 24,868 | |||||||||
| Retained earnings | 250,536 | 280,791 | |||||||||
| Total stockholders’ equity | 411,065 | 441,914 | |||||||||
| Total liabilities and stockholders’ equity | $ | 818,042 | $ | 916,630 | |||||||
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Y/Y % Change | |||||||||||||||||
| Cash Flows and Shares | |||||||||||||||||||||||
| Operating cash flow -- trailing twelve months (TTM) | $ | 115,877 | $ | 113,903 | $ | 121,137 | $ | 130,691 | $ | 139,514 | $ | 148,531 | 30 | % | |||||||||
| Operating cash flow -- TTM Y/Y growth | 36 | % | 15 | % | 12 | % | 16 | % | 20 | % | 30 | % | N/A | ||||||||||
| Purchases of property and equipment, net of proceeds from sales and incentives -- TTM | $ | 77,658 | $ | 87,978 | $ | 102,953 | $ | 115,903 | $ | 128,320 | $ | 147,299 | 67 | % | |||||||||
| Free cash flow -- TTM (1) | $ | 38,219 | $ | 25,925 | $ | 18,184 | $ | 14,788 | $ | 11,194 | $ | 1,232 | (95) | % | |||||||||
| Common shares and stock-based awards outstanding | 10,876 | 10,876 | 10,952 | 10,955 | 10,953 | 10,949 | 1 | % | |||||||||||||||
| Common shares outstanding | 10,593 | 10,613 | 10,660 | 10,687 | 10,731 | 10,754 | 1 | % | |||||||||||||||
| Stock-based awards outstanding | 283 | 263 | 292 | 268 | 222 | 195 | (26) | % | |||||||||||||||
| Stock-based awards outstanding -- % of common shares outstanding | 2.7 | % | 2.5 | % | 2.7 | % | 2.5 | % | 2.1 | % | 1.8 | % | N/A | ||||||||||
| Results of Operations | |||||||||||||||||||||||
| Worldwide (WW) net sales | $ | 187,792 | $ | 155,667 | $ | 167,702 | $ | 180,169 | $ | 213,386 | $ | 181,519 | 17 | % | |||||||||
| WW net sales -- Y/Y growth, excluding F/X | 11 | % | 10 | % | 12 | % | 12 | % | 12 | % | 15 | % | N/A | ||||||||||
| WW net sales -- TTM | $ | 637,959 | $ | 650,313 | $ | 670,038 | $ | 691,330 | $ | 716,924 | $ | 742,776 | 14 | % | |||||||||
| WW net sales -- TTM Y/Y growth, excluding F/X | 11 | % | 11 | % | 11 | % | 11 | % | 12 | % | 13 | % | N/A | ||||||||||
| Operating income | $ | 21,203 | $ | 18,405 | $ | 19,171 | $ | 17,422 | $ | 24,977 | $ | 23,852 | 30 | % | |||||||||
| F/X impact -- favorable (unfavorable) | $ | 14 | $ | 53 | $ | 153 | $ | 129 | $ | 23 | $ | (33) | N/A | ||||||||||
| Operating income -- Y/Y growth (decline), excluding F/X | 60 | % | 20 | % | 30 | % | (1) | % | 18 | % | 30 | % | N/A | ||||||||||
| Operating margin -- % of WW net sales | 11.3 | % | 11.8 | % | 11.4 | % | 9.7 | % | 11.7 | % | 13.1 | % | N/A | ||||||||||
| Operating income -- TTM | $ | 68,593 | $ | 71,691 | $ | 76,190 | $ | 76,201 | $ | 79,975 | $ | 85,422 | 19 | % | |||||||||
| Operating income -- TTM Y/Y growth, excluding F/X | 86 | % | 51 | % | 40 | % | 25 | % | 16 | % | 19 | % | N/A | ||||||||||
| Operating margin -- TTM % of WW net sales | 10.8 | % | 11.0 | % | 11.4 | % | 11.0 | % | 11.2 | % | 11.5 | % | N/A | ||||||||||
| Net income | $ | 20,004 | $ | 17,127 | $ | 18,164 | $ | 21,187 | $ | 21,192 | $ | 30,255 | 77 | % | |||||||||
| Net income per diluted share | $ | 1.86 | $ | 1.59 | $ | 1.68 | $ | 1.95 | $ | 1.95 | $ | 2.78 | 75 | % | |||||||||
| Net income -- TTM | $ | 59,248 | $ | 65,944 | $ | 70,623 | $ | 76,482 | $ | 77,670 | $ | 90,798 | 38 | % | |||||||||
| Net income per diluted share -- TTM | $ | 5.53 | $ | 6.13 | $ | 6.55 | $ | 7.08 | $ | 7.17 | $ | 8.37 | 36 | % | |||||||||
______________________________
(1)Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions)
(unaudited)
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Y/Y % Change | |||||||||||||||||
| Segments | |||||||||||||||||||||||
| North America Segment: | |||||||||||||||||||||||
| Net sales | $ | 115,586 | $ | 92,887 | $ | 100,068 | $ | 106,267 | $ | 127,083 | $ | 104,143 | 12 | % | |||||||||
| Net sales -- Y/Y growth, excluding F/X | 10 | % | 8 | % | 11 | % | 11 | % | 10 | % | 12 | % | N/A | ||||||||||
| Net sales -- TTM | $ | 387,497 | $ | 394,043 | $ | 404,078 | $ | 414,808 | $ | 426,305 | $ | 437,561 | 11 | % | |||||||||
| Operating income | $ | 9,256 | $ | 5,841 | $ | 7,517 | $ | 4,789 | $ | 11,472 | $ | 8,267 | 42 | % | |||||||||
| F/X impact -- unfavorable | $ | (49) | $ | (32) | $ | (46) | $ | (53) | $ | (73) | $ | (41) | N/A | ||||||||||
| Operating income -- Y/Y growth (decline), excluding F/X | 44 | % | 18 | % | 49 | % | (14) | % | 25 | % | 42 | % | N/A | ||||||||||
| Operating margin -- % of North America net sales | 8.0 | % | 6.3 | % | 7.5 | % | 4.5 | % | 9.0 | % | 7.9 | % | N/A | ||||||||||
| Operating income -- TTM | $ | 24,967 | $ | 25,825 | $ | 28,277 | $ | 27,403 | $ | 29,619 | $ | 32,045 | 24 | % | |||||||||
| Operating margin -- TTM % of North America net sales | 6.4 | % | 6.6 | % | 7.0 | % | 6.6 | % | 6.9 | % | 7.3 | % | N/A | ||||||||||
| International Segment: | |||||||||||||||||||||||
| Net sales | $ | 43,420 | $ | 33,513 | $ | 36,761 | $ | 40,896 | $ | 50,724 | $ | 39,789 | 19 | % | |||||||||
| Net sales -- Y/Y growth, excluding F/X | 9 | % | 8 | % | 11 | % | 10 | % | 11 | % | 11 | % | N/A | ||||||||||
| Net sales -- TTM | $ | 142,906 | $ | 144,484 | $ | 149,582 | $ | 154,590 | $ | 161,894 | $ | 168,170 | 16 | % | |||||||||
| Operating income | $ | 1,315 | $ | 1,017 | $ | 1,494 | $ | 1,199 | $ | 1,040 | $ | 1,424 | 40 | % | |||||||||
| F/X impact -- favorable (unfavorable) | $ | 6 | $ | (56) | $ | 338 | $ | 302 | $ | 319 | $ | 347 | N/A | ||||||||||
| Operating income -- Y/Y growth (decline), excluding F/X | N/A | 19 | % | 324 | % | (31) | % | (45) | % | 6 | % | N/A | |||||||||||
| Operating margin -- % of International net sales | 3.0 | % | 3.0 | % | 4.1 | % | 2.9 | % | 2.1 | % | 3.6 | % | N/A | ||||||||||
| Operating income -- TTM | $ | 3,792 | $ | 3,906 | $ | 5,127 | $ | 5,025 | $ | 4,750 | $ | 5,157 | 32 | % | |||||||||
| Operating margin -- TTM % of International net sales | 2.7 | % | 2.7 | % | 3.4 | % | 3.2 | % | 2.9 | % | 3.1 | % | N/A | ||||||||||
| AWS Segment: | |||||||||||||||||||||||
| Net sales | $ | 28,786 | $ | 29,267 | $ | 30,873 | $ | 33,006 | $ | 35,579 | $ | 37,587 | 28 | % | |||||||||
| Net sales -- Y/Y growth, excluding F/X | 19 | % | 17 | % | 17 | % | 20 | % | 24 | % | 28 | % | N/A | ||||||||||
| Net sales -- TTM | $ | 107,556 | $ | 111,786 | $ | 116,378 | $ | 121,932 | $ | 128,725 | $ | 137,045 | 23 | % | |||||||||
| Operating income | $ | 10,632 | $ | 11,547 | $ | 10,160 | $ | 11,434 | $ | 12,465 | $ | 14,161 | 23 | % | |||||||||
| F/X impact -- favorable (unfavorable) | $ | 57 | $ | 141 | $ | (139) | $ | (120) | $ | (223) | $ | (339) | N/A | ||||||||||
| Operating income -- Y/Y growth, excluding F/X | 48 | % | 21 | % | 10 | % | 11 | % | 19 | % | 26 | % | N/A | ||||||||||
| Operating margin -- % of AWS net sales | 36.9 | % | 39.5 | % | 32.9 | % | 34.6 | % | 35.0 | % | 37.7 | % | N/A | ||||||||||
| Operating income -- TTM | $ | 39,834 | $ | 41,960 | $ | 42,786 | $ | 43,773 | $ | 45,606 | $ | 48,220 | 15 | % | |||||||||
| Operating margin -- TTM % of AWS net sales | 37.0 | % | 37.5 | % | 36.8 | % | 35.9 | % | 35.4 | % | 35.2 | % | N/A | ||||||||||
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except employee data)
(unaudited)
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Y/Y % Change | |||||||||||||||||
| Net Sales | |||||||||||||||||||||||
| Online stores (1) | $ | 75,556 | $ | 57,407 | $ | 61,485 | $ | 67,407 | $ | 82,988 | $ | 64,254 | 12 | % | |||||||||
| Online stores -- Y/Y growth, excluding F/X | 8 | % | 6 | % | 10 | % | 8 | % | 8 | % | 9 | % | N/A | ||||||||||
| Physical stores (2) | $ | 5,579 | $ | 5,533 | $ | 5,595 | $ | 5,578 | $ | 5,855 | $ | 5,785 | 5 | % | |||||||||
| Physical stores -- Y/Y growth, excluding F/X | 8 | % | 6 | % | 7 | % | 7 | % | 5 | % | 4 | % | N/A | ||||||||||
| Third-party seller services (3) | $ | 47,485 | $ | 36,512 | $ | 40,348 | $ | 42,486 | $ | 52,816 | $ | 41,578 | 14 | % | |||||||||
| Third-party seller services -- Y/Y growth, excluding F/X | 9 | % | 7 | % | 10 | % | 11 | % | 10 | % | 12 | % | N/A | ||||||||||
| Advertising services (4) | $ | 17,288 | $ | 13,921 | $ | 15,694 | $ | 17,703 | $ | 21,317 | $ | 17,243 | 24 | % | |||||||||
| Advertising services -- Y/Y growth, excluding F/X | 18 | % | 19 | % | 22 | % | 22 | % | 22 | % | 22 | % | N/A | ||||||||||
| Subscription services (5) | $ | 11,508 | $ | 11,715 | $ | 12,208 | $ | 12,574 | $ | 13,122 | $ | 13,427 | 15 | % | |||||||||
| Subscription services -- Y/Y growth, excluding F/X | 10 | % | 11 | % | 11 | % | 10 | % | 12 | % | 12 | % | N/A | ||||||||||
| AWS | $ | 28,786 | $ | 29,267 | $ | 30,873 | $ | 33,006 | $ | 35,579 | $ | 37,587 | 28 | % | |||||||||
| AWS -- Y/Y growth, excluding F/X | 19 | % | 17 | % | 17 | % | 20 | % | 24 | % | 28 | % | N/A | ||||||||||
| Other (6) | $ | 1,590 | $ | 1,312 | $ | 1,499 | $ | 1,415 | $ | 1,709 | $ | 1,645 | 25 | % | |||||||||
| Other -- Y/Y growth, excluding F/X | 17 | % | 4 | % | 18 | % | 7 | % | 7 | % | 25 | % | N/A | ||||||||||
| Stock-based Compensation Expense | |||||||||||||||||||||||
| Cost of sales | $ | 205 | $ | 148 | $ | 250 | $ | 197 | $ | 182 | $ | 171 | 16 | % | |||||||||
| Fulfillment | $ | 697 | $ | 497 | $ | 880 | $ | 685 | $ | 641 | $ | 601 | 21 | % | |||||||||
| Technology and infrastructure | $ | 2,747 | $ | 2,060 | $ | 3,655 | $ | 2,697 | $ | 2,459 | $ | 2,286 | 11 | % | |||||||||
| Sales and marketing | $ | 916 | $ | 653 | $ | 1,207 | $ | 832 | $ | 753 | $ | 663 | 2 | % | |||||||||
| General and administrative | $ | 430 | $ | 331 | $ | 542 | $ | 436 | $ | 362 | $ | 311 | (6) | % | |||||||||
| Total stock-based compensation expense | $ | 4,995 | $ | 3,689 | $ | 6,534 | $ | 4,847 | $ | 4,397 | $ | 4,032 | 9 | % | |||||||||
| Other | |||||||||||||||||||||||
| WW shipping costs | $ | 28,549 | $ | 22,495 | $ | 23,370 | $ | 25,384 | $ | 31,492 | $ | 25,709 | 14 | % | |||||||||
| WW shipping costs -- Y/Y growth | 4 | % | 3 | % | 6 | % | 8 | % | 10 | % | 14 | % | N/A | ||||||||||
| WW paid units -- Y/Y growth (7) | 11 | % | 8 | % | 12 | % | 11 | % | 12 | % | 15 | % | N/A | ||||||||||
| WW seller unit mix -- % of WW paid units (7) | 62 | % | 61 | % | 62 | % | 62 | % | 61 | % | 60 | % | N/A | ||||||||||
| Employees (full-time and part-time; excludes contractors & temporary personnel) | 1,556,000 | 1,560,000 | 1,546,000 | 1,578,000 | 1,576,000 | 1,575,000 | 1 | % | |||||||||||||||
| Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth | 2 | % | 3 | % | 1 | % | 2 | % | 1 | % | 1 | % | N/A | ||||||||||
________________________
(1)Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”
(2)Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(3)Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
(4)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(5)Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(6)Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements.
(7)Excludes the impact of Whole Foods Market.
Amazon.com, Inc.
Certain Definitions
Customer Accounts
•References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.
Seller Accounts
•References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.
AWS Customers
•References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period.
Units
•References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards.
Contacts:
| Amazon Investor Relations | Amazon Public Relations | |||||||
| amazon-ir@amazon.com | amazon-pr@amazon.com | |||||||
| amazon.com/ir | amazon.com/pr | |||||||
Exhibit 99.2
Non-GAAP Financial Measures
Regulation G, Conditions for Use of Non-GAAP Financial Measures, and other SEC regulations define and prescribe the conditions for use of certain non-GAAP financial information. Free cash flow and the effect of foreign exchange rates on our consolidated statements of operations meet the definition of non-GAAP financial measures.
Our financial focus is on long-term, sustainable growth in free cash flow. We provide a free cash flow measure because we believe it provides additional perspective on the impact of acquiring property and equipment with cash.
Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”
Free cash flow has limitations as it omits certain components of the overall cash flow statement and does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate the portion of payments representing principal reductions of debt or cash payments for business acquisitions. Additionally, our mix of property and equipment acquisitions with cash or other financing options may change over time. Therefore, we believe it is important to view free cash flow only as a complement to our entire consolidated statements of cash flows.
For a quantitative reconciliation of free cash flow to the most directly comparable amounts reported in accordance with GAAP, see “Supplemental Financial Information and Business Metrics” in Exhibit 99.1 to this Current Report on Form 8-K.
The effect on our consolidated statements of operations from changes in foreign exchange rates versus the U.S. Dollar is also a non-GAAP financial measure. Information regarding the effect of foreign exchange rates, versus the U.S. Dollar, on our consolidated statements of operations is provided to show reported period operating results had the foreign exchange rates remained the same as those in effect in the comparable prior year period. We include various measures on both an as-reported basis and a basis showing the effect of changes in foreign exchange rates versus the U.S. Dollar in “Supplemental Financial Information and Business Metrics” in Exhibit 99.1 to this Current Report on Form 8-K.
FAQ
How did Amazon (AMZN) perform financially in Q1 2026?
Amazon delivered strong Q1 2026 results, with net sales of $181.5 billion, up 17% from $155.7 billion a year earlier. Operating income rose to $23.9 billion from $18.4 billion, and net income increased to $30.3 billion, or $2.78 per diluted share.
How fast did AWS grow for Amazon (AMZN) in Q1 2026?
AWS remained Amazon’s key growth driver in Q1 2026, with net sales rising 28% year-over-year to $37.6 billion. AWS operating income increased to $14.2 billion from $11.5 billion, and management noted this was AWS’s fastest growth rate in 15 quarters on a large revenue base.
What happened to Amazon’s (AMZN) free cash flow over the last year?
Amazon’s trailing-twelve-month free cash flow declined sharply to $1.2 billion from $25.9 billion. The company attributed this mainly to a $59.3 billion year-over-year increase in purchases of property and equipment, net of proceeds and incentives, largely tied to artificial intelligence investments.
What guidance did Amazon (AMZN) give for Q2 2026?
For Q2 2026, Amazon expects net sales between $194.0 billion and $199.0 billion, reflecting 16%-19% year-over-year growth. Operating income is projected between $20.0 billion and $24.0 billion, compared with $19.2 billion in Q2 2025, assuming Prime Day occurs in the quarter.
How did Amazon’s (AMZN) North America and International segments perform?
In Q1 2026, North America net sales grew 12% to $104.1 billion, with operating income rising to $8.3 billion from $5.8 billion. International net sales increased 19% to $39.8 billion, and operating income improved to $1.4 billion from $1.0 billion, showing broader profitability.
What role did Amazon’s investment in Anthropic play in Q1 2026 results?
Amazon’s Q1 2026 net income of $30.3 billion included pre-tax gains of $16.8 billion in non-operating income from its investments in Anthropic. These gains significantly boosted reported profitability, supplementing underlying improvements in operating income across North America, International, and AWS.
How are Amazon’s (AMZN) AI and cloud investments reflected in its financials?
Amazon’s AI and cloud focus appears in AWS’s 28% sales growth and large capital spending. Trailing-twelve-month purchases of property and equipment, net of proceeds and incentives, reached $147.3 billion, up 67% year-over-year, primarily reflecting artificial intelligence-related infrastructure investments across chips and data centers.