Amazon AWS Outshines Google Cloud in Q2 2026 with Strong Revenue Growth

Amazon's cloud computing arm AWS posted robust financial results in Q2 2026. The company generated $42.2 billion in revenue, up from previous quarters, with a notable operating margin of 39%. Importantly, Amazon was able to self-fund its massive capex of $53.1 billion through strong cash flow.

This means that AWS has more financial flexibility and resilience compared to Alphabet's Google Cloud, which grew at an impressive 82% but relies on debt and equity financing worth a staggering $70 billion. This increased leverage raises concerns about Alphabet's financial risk and potential margin pressure ahead.