Amazon beats cloud sales growth estimates; shares jump
Boxes of customer orders move along a conveyor belt at Amazon’s LCY3 fulfilment centre in Dartford, Britain, June 4, 2026. REUTERS/Toby Shepheard
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
July 30 : Amazon.com beat market expectations for quarterly cloud sales growth on Thursday, calming prior fears among investors over hefty planned outlays for artificial intelligence development.
Shares in the Seattle-based online retailer jumped more than 9 per cent after the market’s close, following a 3.9 per cent rise during the trading session.
Revenue at its cloud computing unit, Amazon Web Services, jumped 37 per cent to $42.2 billion in the second quarter ended June 30, compared with analysts’ consensus estimate of a 31.21 per cent increase, according to data compiled by LSEG.
“AWS is booming,” CEO Andy Jassy said in a statement, noting it was the unit’s fastest growth in 18 quarters. “Our AI and chips businesses each eclipsed run rates of more than $25 billion.”
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Amazon said it burned $7.6 billion of cash on a trailing 12-month basis in the second quarter, compared to $18.2 billion in free cash flow a year earlier.
The strong showing from the world’s No. 1 cloud services provider mirrors solid performances from rivals Microsoft and Alphabet’s Google, both of which comfortably beat Wall Street estimates for cloud revenue.
The upbeat results could help quell some concerns over Big Tech’s relentless AI investments — set to exceed $700 billion this year — which have strained cash flows at the traditionally cash-rich companies and sparked worries that they might be overbuilding capacity.
Companies including Amazon, however, have argued that the spending is crucial. The outlays, they say, help ease capacity constraints that have prevented them from fully meeting AI-driven demand, pointing to their ballooning contract backlogs.
AWS has benefited from a growing roster of partnerships this year, including massive cloud infrastructure and chip supply deals with OpenAI, Anthropic, Meta, Pinterest and Snowflake.
The company said earlier this year that AWS’ annual AI revenue run rate had surpassed $15 billion and was growing in a triple-digit percentage range, looking to reassure investors that its investments were generating clear returns.
Analysts have said Amazon will be able to sustain that level of growth as more data center capacity comes online over the next several months.
In its e-commerce business, Amazon has been rolling out faster delivery services globally and expanding to more rural areas of the U.S. to draw more shoppers.
The company also held its annual Prime Day event in the quarter, running from June 23 through June 26. The online shopping event featuring steep discounts saw customers snap up electronics, appliances and everyday essentials, with an Adobe Analytics estimate pegging total spending at over $26.4 billion.
Advertising, another closely watched metric, showed continued strength as Amazon packs more of its properties with marketing messages. The firm said ad sales rose 26 per cent from a year earlier to $19.8 billion.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
