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Amazon Announces Second-Quarter Results: Revenue Reaches $200.6 Billion

Amazon announced its financial results for the second quarter ended June 30, 2026. The e-commerce and technology company’s net sales increased 20% year over year, rising from $167.7 billion to $200.6 billion. Strong growth at Amazon Web Services, artificial intelligence investments, accelerated delivery operations, and higher advertising revenue stood out in the results.

Amazon Exceeds Revenue and Profit Expectations

According to results published by AlphaStreet, Amazon’s second-quarter net sales reached $200.6 billion, while diluted earnings per share rose from $1.68 to $5.75. The company’s operating income also increased from $19.2 billion in the same period last year to $27.5 billion. Amazon expects third-quarter net sales to be between $197 billion and $202 billion.

Amazon’s net income increased from $18.2 billion to $62.6 billion in the second quarter. The reported net income included $53.4 billion in pre-tax non-operating income, primarily related to Amazon’s investment in Anthropic. Trailing 12-month operating cash flow increased 33% to $161.4 billion, while free cash flow shifted from a positive $18.2 billion to an outflow of $7.6 billion.

Amazon’s revenue of $200.61 billion exceeded the market expectation of $196.46 billion. Earnings of $5.75 per share also came in above analysts’ estimate of $1.82. North America sales increased 16% to $116.2 billion, while international sales rose 15% to $42.2 billion. Amazon reported total cash, cash equivalents, and restricted cash of $80.93 billion at the end of the period.

Amazon AWS Records Its Fastest Growth in 18 Quarters

Amazon Web Services’ second-quarter revenue increased 37% year over year to $42.2 billion. As a result, AWS recorded its highest growth rate in the past 18 quarters. The cloud unit’s operating income rose from $10.2 billion to $16.6 billion. AWS’s annualized revenue run rate reached $169 billion, while each of Amazon’s artificial intelligence and chip businesses surpassed an annualized revenue run rate of $25 billion.

Amazon shares rose approximately 5.2% during the regular trading session on earnings expectations. The company had previously expected second-quarter revenue to be between $194 billion and $199 billion. In the first quarter of the year, Amazon made $44.2 billion in capital expenditures to expand its data center and artificial intelligence capacity. This represented an increase of more than 76% year over year.

Amazon shares rose about 10% in premarket trading following the financial results. AWS’s revenue of $42.2 billion and growth rate of 36.7% were among the highlights of the results. Arun Sundaram, Senior Vice President at CFRA Research, described the results as a strong quarter for Amazon.

Artificial Intelligence Investment Budget Raised to $220 Billion

Meanwhile, Amazon increased its planned capital expenditures for 2026 from $200 billion to $220 billion. Rising memory chip costs contributed to the $20 billion increase in the investment plan, which covers artificial intelligence as well as robotics systems, semiconductors, and satellite technologies.

Amazon CEO Andy Jassy said that despite the $220 billion in spending, the company would not be able to build enough capacity to meet all of the demand in 2026. Jassy stated that a similar situation could continue in 2027 and that there is already notable demand for 2028.

Amazon entered into various agreements with OpenAI, Anthropic, and Meta as part of its efforts to expand its artificial intelligence infrastructure. The company also secured long-term capacity commitments for Trainium chips and added new foundation models developed by OpenAI, Anthropic, and Google DeepMind to the Amazon Bedrock platform.

E-Commerce, Advertising, and Fast Delivery Supported Growth

Amazon’s advertising revenue also increased 26% in the second quarter to $19.8 billion. The company continued to expand advertising inventory on Prime Video and its e-commerce platform. Consumer spending during Amazon’s four-day Prime Day campaign in the quarter exceeded $26.4 billion, according to Adobe Analytics estimates.

Amazon accelerated delivery times in its retail operations by using robotics systems, artificial intelligence, and more efficient warehousing models. In the first half of the year, the number of products delivered to Prime members on the same day or the following morning increased by more than 40%. The company also expanded small fulfillment centers offering 30-minute delivery in certain cities. The number of new Amazon Pharmacy customers more than doubled in the first six months of the year, while same-day prescription deliveries increased nearly fivefold.

Amazon expects third-quarter net sales of between $197 billion and $202 billion and operating income of between $22.5 billion and $26.5 billion. The company’s third-quarter revenue forecast came in below analysts’ expectation of approximately $203.9 billion.

Amazon Reports Strong Q1 2026 Growth as AI and Cloud Drive Positive Momentum

Amazon Tops the Fortune Global 500: Walmart’s 12-Year Leadership Comes to an End

Amazon ranked first on the 2026 Fortune Global 500 list, bringing Walmart’s 12-year leadership to an end. The company, which operates in the fields of e-commerce, cloud computing, advertising, logistics, and artificial intelligence, generated $716.9 billion in revenue in 2025. Walmart ranked second on the list with revenue of $713.2 billion.

Founded in 1994 as an online bookstore, Amazon became the sixth company to reach the top in the 37-year history of the Fortune Global 500. The company’s compound annual growth rate during the 2018–2025 period reached approximately three times Walmart’s growth rate over the same period.

AWS and Artificial Intelligence Drove Amazon’s Growth

While e-commerce operations constituted Amazon’s largest source of revenue, Amazon Web Services (AWS) stood out in terms of profitability. AWS revenue increased by 20 percent in 2025, reaching $128.7 billion. Although the cloud computing unit accounted for less than one-fifth of Amazon’s total revenue, it generated $45.6 billion in operating profit. This figure corresponded to approximately 57 percent of the company’s total operating profit.

The company is planning approximately $200 billion in capital expenditure in 2026, particularly for AWS, generative artificial intelligence, custom chips, robotic systems, and satellite technologies. Amazon CEO Andy Jassy linked the growth in the company’s retail, advertising, and AWS operations to investments in innovation.

E-Commerce and Logistics Network Supported Amazon

Amazon’s Prime membership system, marketplace model, and its own delivery infrastructure played an important role in the company’s growth. The company’s multichannel structure, extending from retail and cloud services to advertising and entertainment, enabled it to diversify its revenue sources. According to Fortune, Amazon’s logistics network handles approximately 29 percent of package deliveries in the United States.

Walmart Increased Its Digital Retail Investments

Walmart strengthened its e-commerce infrastructure by transforming its physical stores into delivery and order pickup points. While the company’s global e-commerce sales grew by 24 percent in the 2026 fiscal year, Walmart U.S. online sales increased by 27 percent in the final quarter. The retail company also expanded its investments in advertising, media, and artificial intelligence. Walmart’s shopping experience within ChatGPT brings together product discovery, account linking, loyalty programs, and Walmart payment options.

Amazon Business Surpasses $60 Billion in Annualized Sales, Accelerates AI-Driven B2B Procurement

Amazon Business has reached a major milestone, surpassing $60 billion in annualized gross sales while serving more than 11 million organizations worldwide. The achievement reflects the platform’s rapid expansion and the growing demand for digital procurement solutions across enterprises, governments, healthcare organizations, and educational institutions.

More than 1.8 million new organizations joined Amazon Business during the first half of 2026, reinforcing the company’s position as one of the world’s largest B2B e-commerce platforms. The continued growth demonstrates how businesses are increasingly shifting procurement operations to digital marketplaces that offer greater efficiency, pricing transparency, and supply chain flexibility.

Agentic AI Reshapes Enterprise Purchasing

Amazon is complementing its marketplace growth with a new generation of AI-powered procurement capabilitiesdesigned to simplify purchasing decisions. The company is introducing intelligent tools that help procurement teams identify cost-saving opportunities, detect unusual spending patterns, recommend relevant products, and automate routine purchasing tasks.

These innovations are part of a broader industry shift toward agentic AI, where autonomous AI systems assist buyers throughout the procurement lifecycle. Rather than relying solely on manual searches, businesses can leverage AI agents to evaluate suppliers, compare products, optimize purchasing decisions, and streamline procurement workflows.

A Growing Global B2B Marketplace

Amazon Business now supports organizations across 11 international markets, offering access to millions of products from third-party sellers alongside Amazon’s own inventory. Customers benefit from business-only pricing, quantity discounts, enhanced Prime Business services, tax-exempt purchasing options, and enterprise-grade procurement integrations.

The platform continues to expand its logistics capabilities, enabling faster commercial deliveries and helping organizations manage procurement more efficiently across multiple departments and locations.

The Future of B2B Commerce Is AI-Driven

Industry analysts believe AI will fundamentally transform enterprise purchasing over the coming years. As intelligent procurement assistants become more capable of managing sourcing, budgeting, compliance, and purchasing decisions, businesses are expected to reduce manual processes while improving operational efficiency and cost control.

Amazon’s combination of marketplace scale, advanced logistics infrastructure, and AI-powered procurement tools positions the company to play a leading role in the next phase of digital B2B commerce.

Source

Amazon Decides to Layoff Employees in Its Artificial Intelligence Unit

Amazon has eliminated some positions within its Artificial General Intelligence (AGI) organization, which works on advanced artificial intelligence models. The company did not disclose the number of employees affected by the layoff decision. It was reported that the restructuring was carried out to allocate more resources to artificial intelligence projects considered a priority in terms of customer needs.

Layoff Decision Linked to Customer-Focused Artificial Intelligence Projects

An Amazon spokesperson stated that developing large artificial intelligence models remains among the company’s most important areas of work. The spokesperson said Amazon aims to accelerate development in critical areas by focusing on initiatives that matter most to customers.

In its statement, the company noted that this focus required layoff decisions, including the elimination of certain roles in specific parts of the AGI organization. Amazon said that despite the layoff process, it would continue investing in areas it considers important for the future of its customers.

Management Structure in the AGI Unit Had Changed

Rohit Prasad, who led Amazon’s AGI efforts, left the company in late 2025. AGI Lab President David Luan also stepped down from his role in February 2026. In December, the company placed the AGI group under a broader organization led by Senior Vice President Peter DeSantis, which also includes chip development and quantum computing teams.

The latest layoff decision came after Amazon eliminated approximately 16,000 positions across the company in January 2026. According to Amazon’s statement, affected employees in the United States will be offered 90 days of pay and benefits, career transition support, temporary health coverage, and severance pay depending on eligibility.

Amazon Continues Its Artificial Intelligence Investments

Amazon said that despite the downsizing of its AGI team, it has not stepped back from its artificial intelligence investments. In June 2026, AWS announced a new $1 billion program for artificial intelligence engineers who will work within companies to help customers develop agentic AI systems.

Under the program, thousands of specialists are expected to work directly with customer teams. In a separate layoff process being carried out at two Amazon warehouse facilities in Florida, the number of affected employees is expected to exceed 1,000 due to facility renovation work.

Amazon Turns 32: The Online Bookstore Founded in a Garage Became a Global E-Commerce Giant

Amazon marked its 32nd year on July 5, 2026, once again bringing its growth in e-commerce, retail, cloud technologies, and artificial intelligence to the agenda. Founded by Jeff Bezos on July 5, 1994, in Bellevue, Washington, the company first came to life under the name “Cadabra”; it later took the name Amazon.com. The company’s website began operations on July 16, 1995, selling only books.

Amazon’s E-Commerce Journey Began with Books

Amazon quickly expanded its operations, which began with online book sales, into music, video, consumer products, the third-party marketplace model, and various digital services. This transformation enabled the company to position itself not only as an e-commerce platform but also as one of the most important players in the global retail and technology ecosystem.

Amazon Strengthened Its Power in U.S. Retail

According to JPMorgan estimates, Amazon surpassed Walmart last year to become the largest retailer in the U.S. The company’s retail-focused revenues account for approximately 74 percent of its total revenues. Amazon’s market value stands at approximately $2.61 trillion.

Artificial Intelligence and AWS Stand Out for Amazon

Amazon Web Services continues to play an important role in Amazon’s growth. AWS generated approximately $129 billion in revenue in 2025, and its annualized revenue run rate reportedly exceeded $140 billion in 2026. This growth strengthens the company’s position in artificial intelligence infrastructure, cloud services, and enterprise technology solutions.

Financial Indicators and Investor Tracking

Amazon’s P/E ratio stands at 29.03. While the company’s GF Score is stated as 94/100, it is reported to show strong performance in financial strength, profitability, and growth. The source news also stated that $51.6 million worth of insider stock sales took place in the company over the last three months, with no purchases reported.

Amazon’s New Focus: Digital Retail and Artificial Intelligence

Amazon’s 32-year transformation reveals the new structure of e-commerce extending from traditional product sales to AI-powered retail, data-driven operations, cloud infrastructure, and the marketplace economy. The company continues to maintain its influence in the global digital commerce ecosystem through online retail, third-party seller services, advertising, devices, and AWS.

Founded in a Garage, Transformed into a Global E-Commerce Giant

Amazon’s founding story is one of the most remarkable entrepreneurial journeys in modern e-commerce. Jeff Bezos left his career on Wall Street in 1994, foresaw that the internet would grow rapidly, and decided to establish a company that would be at the center of this transformation. His first goal was to sell books online. Because books were an ideal starting point for online sales due to their wide product variety, easily catalogable structure, and global demand potential.

Bezos founded the company in the garage of his home in Bellevue, Washington, in the United States. The venture, initially named Cadabra, later took the name Amazon.com, inspired by Amazon, one of the world’s largest rivers. The company’s website went live in 1995 and soon began receiving orders from outside the U.S. as well.

Although Amazon initially operated only as an online bookstore, Bezos’ vision was much broader. Over time, the company invested in different product categories, the third-party seller model, logistics infrastructure, cloud technologies, and artificial intelligence, becoming one of the strongest brands in global digital commerce.

Amazon Tightens Fulfilled by Merchant Requirements Across Europe

Amazon is introducing stricter performance requirements for merchants using its Fulfilled by Merchant (FBM) program, signaling a stronger focus on delivery reliability and customer experience. The updated rules will require sellers to maintain higher delivery standards or risk having their listings deactivated on the marketplace.

Amazon has announced significant changes to its FBM policies, particularly in Germany and the United Kingdom, as it seeks to improve delivery performance and provide more accurate delivery promises to customers. Under the new requirements, sellers will need to maintain an On-Time Delivery Rate (OTDR) of at least 90 percent, with stricter enforcement measures beginning later this year.

Starting on September 1, 2026, German sellers that fail to meet the required delivery standards may see affected listings deactivated and could lose the ability to add new FBM products. Similar requirements are also being introduced for Amazon Business orders, where merchants will be expected to achieve at least a 90 percent business-hour delivery rate beginning September 30. Non-compliant listings for business customers may be removed from October 30 onwards.

Amazon is also tightening its handling time requirements. In the UK, account-level default handling times will be limited to zero-day and one-day options from July 15, 2026. Additionally, the company plans to automatically adjust handling times on products where sellers consistently outperform their own stated processing estimates.

Amazon Expands Fulfillment Requirements as New Cross-Border Regulations Take Effect

The policy updates coincide with new European Union customs regulations affecting cross-border e-commerce shipments. From July 1, 2026, merchants shipping low-value orders from outside the EU into the bloc must use approved carriers and provide enhanced customs documentation, including product-level information and Amazon’s Import One-Stop Shop (IOSS) details for eligible shipments.

The new requirements reflect Amazon’s broader strategy of raising operational standards across its marketplace ecosystem. For merchants, the changes underscore the growing importance of delivery performance, logistics efficiency, and regulatory compliance in maintaining visibility and competitiveness on one of the world’s largest e-commerce platforms.

Source

AWS Launches $1 Billion AI Engineering Unit to Accelerate Enterprise Adoption

Amazon Web Services (AWS) has unveiled a new $1 billion artificial intelligence initiative aimed at helping enterprises deploy AI solutions faster. Through a newly established Forward Deployed Engineering (FDE) organization, AWS plans to embed thousands of AI engineers directly within customer organizations, signaling a major shift from cloud infrastructure provider to hands-on AI implementation partner.

Amazon Web Services (AWS), the cloud computing division of Amazon, has announced a $1 billion investment to establish its new Forward Deployed Engineering (FDE) organization. The initiative will place AWS engineers directly inside customer companies to co-develop and deploy artificial intelligence applications, with a particular focus on agentic AI systems capable of performing complex tasks with minimal human intervention.

The new organization is expected to comprise thousands of engineers who will work in small, embedded teams within client organizations for intensive engagements lasting around 45 days. Rather than acting as traditional consultants, these engineers will collaborate with internal development, business, and security teams to accelerate AI adoption and help organizations establish long-term AI capabilities.

AWS Expands Beyond Cloud Infrastructure with Embedded AI Engineering Teams

According to AWS, many enterprises continue to face challenges when moving AI projects from experimentation to production despite growing investment and interest in the technology. The company believes that embedding engineering teams directly within customer organizations will significantly shorten deployment timelines and help businesses build sustainable AI capabilities internally.

The initiative represents a notable evolution in AWS’s strategy. Historically known for providing cloud infrastructure and developer tools, the company is increasingly positioning itself as an implementation partner that helps enterprises turn AI ambitions into practical business outcomes. The move reflects the rapidly growing demand for hands-on support as organizations seek to integrate generative and agentic AI technologies into their operations.

Industry observers note that AWS is among the first major hyperscale cloud providers to launch a forward-deployed engineering organization at this scale. The initiative also places AWS alongside leading AI companies that have recently introduced similar deployment models, underscoring intensifying competition in enterprise artificial intelligence services.

Initial customers for the program reportedly include organizations such as the NBA, NFL, Ricoh, and Southwest Airlines. AWS expects the new engineering unit to help enterprises rapidly develop customized AI agents, modernize workflows, and become more self-sufficient in managing and scaling AI technologies.

The $1 billion investment highlights Amazon’s broader commitment to strengthening its position in the global enterprise AI market. As artificial intelligence adoption accelerates across industries, AWS is betting that close collaboration between embedded engineers and customer teams will become a key differentiator in helping organizations move from AI experimentation to real-world implementation.

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Global Access to Anthropic’s Advanced AI Models Suspended Following Amazon’s Warning

The U.S. administration has taken a notable decision in the field of artificial intelligence by ordering restrictions on foreign nationals’ access to Anthropic’s most advanced AI models, Fable 5 and Mythos 5. Following the decision, Anthropic disabled global access to the models in question in order to comply.

Amazon CEO Andy Jassy was also reported to be among the technology leaders who conveyed concerns to senior U.S. administration officials regarding the security risks of Anthropic’s models. San Francisco-based artificial intelligence company Anthropic had previously limited the broad release of its Mythos model due to its advanced cybersecurity capabilities.

Anthropic Argued That the Risk Was Limited

The company later released Fable, described as a publicly available version, with certain cybersecurity safeguards. However, the U.S. government assessed that some of the model’s security measures could be bypassed through “jailbreak” methods and that this could be misused to identify software vulnerabilities. Anthropic, for its part, argued that the risk in question was limited and that similar findings could also be obtained through other publicly available models.

The decision shows that artificial intelligence is no longer merely a matter of technological competition, but has also become a strategic field in terms of national security, export controls, and geopolitical power balances. The U.S. administration’s directive points to a framework that could cover not only users outside the United States but also foreign nationals located within the United States. This indicates that criteria such as citizenship and trusted country status may increasingly come to the forefront in access to advanced artificial intelligence models.

Following the restriction, the issue was also brought to the agenda at the G7 summit. According to diplomatic sources, G7 leaders evaluated a plan that could allow selected “trusted partners” to access advanced artificial intelligence models developed by U.S.-based companies. This approach reflects the demand for controlled access to advanced models, particularly to strengthen the cybersecurity defenses of allied countries.

Anthropic Crisis Signals a New Era in the Global Artificial Intelligence Ecosystem

According to experts, the Anthropic crisis signals the beginning of a new era in the global artificial intelligence ecosystem. While governments seek to bring advanced artificial intelligence models under control as strategic technologies, companies are trying to strike a balance between innovation, customer access, and regulatory pressure. The European Union’s ongoing discussions with Anthropic regarding possible access to the Mythos model also show that the issue is critical not only from a U.S.-centric perspective, but also in terms of the global digital security architecture.

This development is seen as an important turning point for artificial intelligence companies, cloud providers, governments, and global enterprises. The process shaped around Amazon, Anthropic, the U.S. administration, and G7 countries indicates that access to advanced artificial intelligence models may from now on be managed through stricter security, oversight, and international cooperation mechanisms.

When the Pope Meets Anthropic: AI’s New Ethical Line

Amazon’s Major Investment Move of Over 17 Billion Euros in the United Kingdom

As Amazon accelerates its growth strategy in Europe, it is also increasing its investments in the United Kingdom. In 2025, the company invested more than 17 billion euros in the country, strengthening its logistics infrastructure and supporting its employment creation targets.

According to the data announced by Amazon, the United Kingdom is the company’s third-largest market globally after the United States and Germany. While the revenue generated from the company’s operations in the country exceeded 34 billion euros in 2025, the taxes it paid also increased by 20 percent year-on-year, exceeding 1.5 billion euros.

Amazon Will Establish New Distribution Centers in the UK

In line with the investment plan it had previously announced, Amazon aims to invest a total of 46 billion euros in the United Kingdom by the end of 2027. Within this scope, four new logistics and distribution centers will be established in the central and northern regions of England.

The company plans to provide additional employment for thousands of people once the new facilities become operational. Amazon, which currently directly employs approximately 75,000 people across the United Kingdom, stands out as one of the country’s largest private sector employers.

Strengthening Its Logistics Network in Europe

The United Kingdom investment is seen as an important part of Amazon’s expansion strategy across Europe. The company had recently announced that it would invest 15 billion euros in France over a three-year period. Within the scope of this investment, new distribution centers will be established and logistics infrastructure will be developed.

While the increasing investments strengthen Amazon’s competitiveness in the European market, they are also expected to make a significant contribution to the region’s e-commerce and logistics ecosystem. In particular, investments in warehousing, distribution, and technology infrastructure are expected to further increase the company’s operational efficiency in the coming years.

Amazon Invests €15 Billion in France to Expand Logistics and AI Operations

Amazon Launches 30-Minute Delivery Option Across the U.S.

Amazon has taken a significant step in the e-commerce sector with the launch of its 30-minute delivery service in several major cities across the United States. The company calls this new service “Amazon Now,” allowing consumers to receive a variety of products, from grocery shopping to household needs, within just 30 minutes.

With “Amazon Now,” Amazon offers great convenience to customers seeking speed while shopping. The company announced that the service will initially be available in large cities such as Atlanta, Dallas-Fort Worth, Philadelphia, and Seattle.

Additionally, the service is planned to expand to other cities such as Austin, Denver, Houston, and Orlando. Amazon aims to provide this service to millions of customers in different regions of the U.S. by the end of the year.

Amazon’s Fast Delivery Competition

Amazon Now offers a wide range of products, from fresh food items to electronics. Customers can quickly access the products they need by placing an order via the app or website. Furthermore, Amazon members can take advantage of this service by paying just a $3.99 fee per order.

With this new 30-minute delivery option, Amazon aims to gain an advantage over competitors not only in terms of speed but also in pricing. Compared to other fast delivery services, Amazon’s pricing strategy is more transparent and generally more favorable for Prime members. For example, Prime members pay only $3.99, while non-Prime members pay $13.99.

New Delivery Locations Set Up for Fast Commerce

In order to enable these fast deliveries, Amazon is reducing its reliance on larger warehouses by setting up smaller delivery locations closer to where customers live. These smaller warehouses not only provide faster delivery times but also make Amazon’s supply chain more efficient.

With “Amazon Now,” Amazon is not only offering 30-minute delivery options but also providing different alternatives with 1-hour and 3-hour delivery options. Additionally, Amazon is testing drone deliveries under Prime Air, which are faster than 60 minutes.

Amazon Prime members can receive millions of products worldwide either the same day or the next day. As of 2025, Amazon Prime members have received over 13 billion products in total.

Amazon Now Expands in Europe; Launched in London!