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Amazon (AMZN) · Q2 2026 results and valuation
Share price: $266.17 · 2026-11-11
Amazon is a multinational conglomerate that operates in e-commerce, cloud computing, online advertising, digital streaming, entertainment, and artificial intelligence. The company sells a wide range of consumer products and services to customers globally. Source: Wikipedia
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 29 Apr 2026
Net income up 107.1% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+107.1%
Net income vs Q1 2026
Outlook given
Net income 62.65B vs 30.25B
Revenue +10.5%
Against the same quarter last year (Q2 2025) it is +244.9%, so it is not just seasonal.
Why Against the same quarter last year (+244.9%), net income rose primarily because of strong growth in AWS revenue driven by core and AI services, as well as growth in Amazon Ads revenue and improved AWS margins.
2 · How management spoke
Typical
Less upbeat than 58% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Amazon is on track to double its power capacity by the end of 2027 compared to its 2025 levels as part of its planned capacity build.
Valuation
Is Amazon undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 11.7% growth a year (3-year revenue growth), the model's fair value is $18.29 a share — the stock trades 1355% above it. Today's price assumes 49.6% growth a year.
Current price
$266.17
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+49.6% for 10 yrs
Fair value / share
$18.29
Buy below
$13.72
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Q3 net sales are expected to be between $197 billion and $202 billion.
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Figure
Amazon reported $200.6 billion in revenue, which increased 20% year-over-year.
Source quote
“We're reporting $200.6 billion in revenue, up 20% year-over-year.”
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Figure
The company expects to lack enough capacity to meet all demand in 2026 and 2027, even with current capacity levels.
Source quote
“Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too.”
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Figure
AWS now has an annualized revenue run rate of $169 billion, highlighting the current scale of the cloud computing division.
Source quote
“AWS now has an annualized revenue run rate of $169 billion.”
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Figure
The number of monthly active perishables customers grew over 50% since the start of the year.
4 more
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Guidance
Amazon remains on track to double its power capacity by the end of 2027 compared to its 2025 levels as part of its planned capacity build.
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Key theme
Amazon is exploring the possibility of selling Trainium chips directly to customers separate from its cloud service due to increasing customer interest.
Source quote
“We do have an increasing number of customers who are interested in us providing the Trainium chips to them, separate from our cloud, and we're actively having those conversations and exploring, and I expect there's a real chance we'll do that in the future.”
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Figure
AWS margins increased by 650 basis points year-over-year despite large investments, indicating the profitability of the cloud division.
Source quote
“You're seeing, despite the large investments, AWS margins have continued to remain strong, and we're up 650 basis points year-over-year.”
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Figure
Amazon is participating in the tariff refund process, as I mentioned earlier, it received approximately $600 million in Q2.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Bedrock not only provides the best selection of leading models at superior performance and with the governance and security controls that companies need, it's also continuing to grow incredibly quickly.”
“We continue to see strong customer response with over 80% growth in growth sales and units sold quarter-over-quarter, and we served over 60% more customers quarter-over-quarter.”
“If you look at the growth in geographies that Whole Foods Markets are in, they're significantly outpacing the growth of comparable grocers, and the profit trajectory continues to trend the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 200.61B | 181.52B | +10.5% | 167.70B | +19.6% |
| Gross profit | 104.83B | 94.06B | +11.5% | 86.89B | +20.6% |
| Operating income | 27.46B | 23.85B | +15.1% | 19.17B | +43.2% |
| Net income | 62.65B | 30.25B | +107.1% | 18.16B | +244.9% |
| EPS | 5.75 | 2.78 | +106.8% | 1.68 | +242.3% |
| P/E today 21.0 | 19.2 | 24.9 | −5.7 | 33.4 | −14.2 |
Topics
Most discussed now
- In Q2, Amazon reported worldwide operating income of $27.5 billion.
- These are things like automating customer service or business process automation or fraud or things like that.
- On the other end of the barbell are enterprises who are getting real value from AI in cost avoidance and...
Faded since Q1 2026
- Fading Amazon is seeing its investments in the seller experience resonate and in turn, grow its business.
- Fading Amazon also saw particularly strong performance for third-party sellers who are important contributors to its broad selection and…
- Fading International segment revenue was $39.8 billion, an increase of 11% year-over-year, excluding the impact of foreign exchange.
- Fading Prime Video is a key pillar of the Prime value proposition and an important driver of new member acquisition.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
Amazon.com, Inc. filed a Form 8-K on September 8, 2026, regarding a change in directors or officers.
- Results of operations · SEC 8-K
Amazon reported net sales of $200.6 billion, up 20% year-over-year, and operating income of $27.5 billion, up 43% compared to the second quarter of 2025.
- Other events · SEC 8-K
- Other events · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
Amazon.com, Inc. entered into a Term Loan Agreement with Citibank N.A. as administrative agent on June 8, 2026.
- Shareholder vote results · SEC 8-K · routine
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2026
planned cash CapEx investment
Source quote
“Earlier this year, we said we plan to invest approximately $200 billion in cash CapEx in 2026, the majority of which to support AI and AWS.”
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2026
revised cash CapEx investment
Source quote
“We now believe we will spend approximately $220 billion in cash CapEx in 2026.”
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2026
capacity to meet demand
Source quote
“Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too.”
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2028
demand for capacity
Source quote
“In fact, the demand we already have for 2028 is striking.”
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this year
initial satellite internet service
Source quote
“Finally, Amazon Leo is close to 400 satellites in orbit, enough to begin initial satellite internet service this year.”