Amazon's stock surged 15% following Q2 2026 earnings results, fueled by the strongest AWS cloud growth in over four years. AWS sales rose 37% to $42.2 billion, beating Wall Street estimates and accounting for 78% of the company's operating profit growth. The cloud segment achieved a 39.4% operating margin, while the company announced plans to increase capital expenditure to $220 billion to support its AI investments.
Amazon reported adjusted operating EPS of $0.86, missing analyst estimates of $1.92, as Anthropic valuation mark-ups masked underlying fundamental performance.
Read the full storyAmazon surpassed the $3 trillion valuation milestone as AWS cloud revenue surged 36.7% YoY with a massive $496 billion backlog.
The e-commerce giant's stock climbed after reporting quarterly financial results that exceeded market expectations and boosted investor sentiment.
AWS margins hit 39.4% driving operating profit growth, as the company commits $220 billion to capital expenditure for AI expansion.
Amazon shares rallied in extended trading as AWS sales growth accelerated to 37%, signaling massive AI investments are yielding results.