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[BUSINESS] · United States · 99 sources

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Amazon Q2 2026 earnings beat forecasts, AWS fuels 15% stock surge

Amazon.com reported second‑quarter 2026 results that topped Wall Street expectations. Revenue from its cloud unit, Amazon Web Services, reached $42.2 billion, a 37 % year‑over‑year increase, while the AWS backlog grew to $496 billion. The company also lifted its 2026 capital‑expenditure outlook to $220 billion, largely for data‑center and AI infrastructure.

Core retail sales rose 16 % in North America and 15 % internationally, and advertising revenue climbed to $19.8 billion, up 26 % YoY. The strong performance sent Amazon’s share price up 14‑15 % on the day, pushing the S&P 500 and Nasdaq 100 to weekly highs. Analysts responded by raising price targets, with the Royal Bank of Canada setting a new $330 target for the stock.

The earnings beat and cloud growth reinforced investor confidence in Amazon’s ability to translate AI‑driven spending into revenue, while also highlighting ongoing cash‑flow pressures from higher capital outlays.

Entities

2026 capital‑expenditure guidance · Amazon Ads · Amazon Capital Expenditure 2026 · Amazon Prime · Amazon Web Services · Amazon Web Services (AWS) · Amazon advertising · Amazon.com Inc. · Amazon.com, Inc. · Andy Jassy · Anthropic · Royal Bank of Canada

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Clouded Judgement 7. 31. 26 - AWS CapEx ROI [cloudedjudgement.substack.com]
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