Amazon.com Stock Earnings Reports

Key points for investors: Amazon reported Q1 2026 revenue of $181.5 billion, up 17% year-over-year (15% ex-FX). Operating income was $23.9 billion and operating margin reached a record 13.1%. AWS continues to accelerate: revenue grew 28% y/y to a roughly $150 billion annualized run rate, driven by strong AI adoption (triple-digit AI revenue growth), Bedrock momentum (including new OpenAI model availability and managed agents preview), and rapidly growing custom silicon (Trainium and Graviton). Amazon’s chips business now has an annualized run rate over $20 billion (and would be ~ $50B if sold standalone), with large multi-year commitments (Trainium commitments > $225 billion) and Trainium2/3 capacity nearly fully subscribed. Capital expenditure remains very high as Amazon scales AI infrastructure (Q1 cash CapEx $43.2 billion) with management reiterating continued significant AI-focused investment and that much CapEx is front-loaded relative to monetization. Stores (including grocery and Whole Foods) showed strong unit growth (15% y/y), faster same-day perishable growth, and continued rollout of AI features (Rufus, Quick, Health AI). Ads grew 22% y/y to $17.2 billion and is being augmented with AI-driven creative/agent tools. Amazon Leo (satellite broadband) is progressing toward commercial launch (on track for Q3 commercial service), Globalstar acquisition to enable direct-to-device and a partnership with Apple expands opportunity. Fulfillment/network efficiency is improving (fulfillment expense +9% y/y, outbound shipping +12% y/y FX-neutral) with robotics/automation deployments planned. Q2 guidance: net sales $194–199 billion; operating income $20–24 billion, incorporating seasonal SBC step-up, Amazon Leo costs, and higher transportation/fuel headwinds. Management frames current investments as positioning Amazon for a once-in-a-lifetime AI-driven inflection with attractive medium-to-long-term ROIC and free cash flow despite near-term CapEx-driven cash pressure.