Amazon's AI Bet Pays Off as AWS Revenue Surges

Amazon's AWS segment posted its fastest growth in 18 quarters, reaching $42.23 billion in revenue for Q2 2026, a 37% year-over-year increase.

This marks the fifth consecutive quarter of accelerating growth, with a trajectory that has seen Amazon's top line expand from 20% to 24%, then to 28%, and now to 37% across the past four quarters.

The segment's operating margin came in at 39.4%, while AWS's contracted backlog stands at $496 billion, growing triple digits year over year.

Andy Jassy has stated that Amazon expects AWS to become a trillion-dollar annual revenue business 'in time,' with the current market capitalization standing at $2.71 trillion and a price-to-earnings ratio of 35.