Amazon's cloud unit AWS grew 37% year-over-year in the second quarter of 2026, its fastest pace since 2021, as demand for AI infrastructure and custom chips accelerated. AWS revenue hit $42.2 billion, pushing its annualized run rate to $169 billion, while operating income nearly doubled to $16.6 billion.
Amazon's total revenue crossed $200.6 billion for the quarter, up 20% year-over-year, with operating income rising 43% to $27.5 billion. CEO Andy Jassy said AWS's AI and chips businesses each now exceed $25 billion in annualized revenue, growing at triple-digit rates. Net income reached $62.6 billion, boosted by a $53.4 billion non-operating gain tied to Amazon's investment in Anthropic.
The results sent Amazon shares soaring as much as 15% in after-hours trading, the stock's biggest jump since 2012, even as capital spending climbed 64% to $169 billion and free cash flow turned negative.