Amazon's AWS Growth Hits 37%, Fueling AI Demand
Amazon's Q2 earnings report was a broad beat, surpassing expectations on both revenue and EPS. The tech giant posted $200.6 billion in revenue, up 20% year over year, and crushed estimates with an EPS of $5.75.
The real story behind Amazon's success is its cloud computing division, AWS, which grew 37% to $42.2 billion, marking the fastest growth in more than four years.
AWS CEO Andy Jassy attributed the strong performance to increased demand for AI capacity, stating that 'Our AI revenue run-rate climbed significantly quarter-over-quarter and is now also over $25 billion, growing triple-digit percentages year-over-year.'
Amazon raised its 2026 capital expenditure outlook to $220 billion, further demonstrating confidence in the growth of its cloud business.