Amazon Q2 Earnings Soar Past Expectations on AWS Growth

Amazon's Q2 earnings report exceeded expectations, with a revenue of $200.6 billion, representing a 20% year-over-year increase and beating analyst estimates.

The company's EPS came in at $5.75, significantly higher than the expected $1.81, while AWS growth accelerated to 37%, its fastest quarterly expansion in over four years.

Amazon's operating income increased by 43% to $27.5 billion, and the operating margin expanded to 13.7%, up from last year's 11.4%.

The company's management acknowledged a negative free cash flow of -$7.6 billion due to high investments in AI infrastructure and R&D, but expects this situation to improve by 2027 if AWS continues to grow.