Amazon reports strong Q2 growth driven by AWS and AI

Amazon reported strong second-quarter results, driving its stock toward record levels despite a slight pullback from recent all-time highs. The company saw significant growth across its core sectors, including cloud computing, advertising, e-commerce, and artificial intelligence.

Amazon Web Services (AWS) reported a 36.7% year-over-year revenue increase to $42.2 billion, marking its fifth consecutive quarter of accelerated growth. The AWS backlog reached $496 billion, and the division achieved an annualized revenue run rate of approximately $169 billion. AWS also generated $16.6 billion in operating income during the quarter.

In the technology sector, Amazon’s custom chip business and AI-related services each surpassed a $25 billion annualized revenue run rate. Additionally, advertising revenue grew 26% year-over-year to $19.8 billion, bolstered by Prime Video, live sports, and Sponsored Products. The company continues to invest heavily in AI infrastructure, including data centers and automation.