Amazon.com (NASDAQ:AMZN) Announces Quarterly Earnings Results, Beats Expectations By $3.93 EPS

Amazon.com, Inc. (NASDAQ:AMZN) posted its quarterly earnings results on Thursday. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.82 by $3.93, FiscalAI reports. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. The business had revenue of $200.61 billion during the quarter, compared to the consensus estimate of $197.03 billion. During the same quarter last year, the firm posted $1.68 EPS. Amazon.com’s revenue was up 19.6% compared to the same quarter last year.

Here are the key takeaways from Amazon.com’s conference call:

• Amazon reported strong Q2 results, with revenue of $200.6 billion, up 20% year over year, and operating income of $27.5 billion, up 43%.
• AWS growth accelerated sharply to 36.7%, reaching a $169 billion annualized revenue run rate, with $496 billion in backlog and operating income of $16.6 billion. Management said AI and core cloud workloads are reinforcing each other and that AWS could eventually become a $1 trillion annual-revenue business.
• Amazon raised its 2026 cash CapEx outlook to approximately $220 billion from $200 billion, primarily because of higher memory costs. Management expects near-term free-cash-flow pressure as data centers are built ahead of monetization, despite forecasting attractive long-term returns.
• Commerce and advertising trends remained strong, including more than 40% growth in same-day or overnight deliveries, over 50% growth in monthly active perishables customers, and 26% advertising revenue growth to $19.8 billion.
• Q3 revenue guidance is $197 billion to $202 billion and operating income guidance is $22.5 billion to $26.5 billion. The expected sequential slowdown largely reflects Prime Day shifting into Q2 this year rather than Q3 in 2025, along with an estimated 80-basis-point foreign-exchange headwind.

Amazon.com Stock Performance

Shares of NASDAQ:AMZN traded up $8.85 during midday trading on Thursday, reaching $235.50. The company had a trading volume of 100,048,928 shares, compared to its average volume of 49,505,375. The company’s 50 day moving average price is $245.59 and its 200 day moving average price is $235.97. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The stock has a market cap of $2.53 trillion, a P/E ratio of 28.17, a P/E/G ratio of 1.73 and a beta of 1.46. Amazon.com, Inc. has a 52-week low of $196.00 and a 52-week high of $278.56.

Analyst Ratings Changes

A number of research firms recently weighed in on AMZN. Wedbush restated an “outperform” rating and issued a $293.00 target price on shares of Amazon.com in a report on Thursday, July 23rd. TD Cowen reissued a “buy” rating and set a $340.00 price objective (down from $350.00) on shares of Amazon.com in a report on Wednesday, July 8th. Citizens Jmp reissued a “market outperform” rating and set a $315.00 price objective on shares of Amazon.com in a report on Wednesday, July 15th. Needham & Company LLC increased their price objective on Amazon.com from $265.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. Finally, Telsey Advisory Group raised their target price on Amazon.com from $300.00 to $315.00 and gave the company an “outperform” rating in a report on Thursday, April 30th. Fifty-seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $313.43.

Key Stories Impacting Amazon.com

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: AWS growth reaccelerated sharply: Amazon Web Services revenue rose 37% year over year—the fastest growth in several years—beating expectations as enterprise AI spending increased. New arrangements with Meta and OpenAI further support demand for Amazon’s cloud infrastructure. Amazon’s AWS posts fastest growth since 2021
• Positive Sentiment: Amazon delivered a broad earnings beat: Second-quarter revenue increased approximately 20% to $200.6 billion, surpassing the $197.0 billion consensus estimate, while EPS of $5.75 exceeded expectations of $1.82. Operating income reached $27.5 billion, and AWS operating profit was approximately $16.6 billion. Amazon.com Announces Second Quarter Results
• Positive Sentiment: Advertising and retail added momentum: Advertising revenue climbed 26% to nearly $20 billion, while Prime Day activity supported the North American e-commerce business. Amazon also said a $600 million tariff refund will be partly passed on to customers. Amazon Thrives On Big Q2
• Positive Sentiment: AI strategy is increasingly focused on monetization: Coverage suggests Amazon is emphasizing AWS infrastructure, partnerships and customer access rather than competing exclusively to build the industry’s top proprietary model. This could improve returns on AI spending and reduce the cost of a frontier-model race. Amazon is proving you don’t need the best model
• Neutral Sentiment: Amazon’s Anthropic investment produced a substantial non-operating gain, boosting reported profitability, but the benefit may be volatile and does not represent recurring operating earnings.
• Negative Sentiment: Spending and guidance remain investor concerns: Amazon’s planned roughly $200 billion of 2026 capital expenditures is pressuring free cash flow, while its third-quarter revenue outlook of $197 billion to $202 billion is below the approximately $204.6 billion analyst consensus. Reports of costly AI deployment errors add to execution risk. Amazon Contends With Unplanned Overspending on AI

Insider Buying and Selling at Amazon.com

In other Amazon.com news, CEO Douglas J. Herrington sold 1,000 shares of Amazon.com stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $239.77, for a total value of $239,770.00. Following the sale, the chief executive officer owned 484,527 shares of the company’s stock, valued at approximately $116,175,038.79. The trade was a 0.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Shelley Reynolds sold 2,363 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $262.38, for a total transaction of $620,003.94. Following the completion of the transaction, the vice president owned 119,780 shares in the company, valued at approximately $31,427,876.40. The trade was a 1.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 136,719 shares of company stock valued at $36,703,652 in the last three months. 8.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Amazon.com

Several large investors have recently modified their holdings of the business. Elkhorn Partners Limited Partnership raised its holdings in Amazon.com by 900.0% during the 4th quarter. Elkhorn Partners Limited Partnership now owns 200 shares of the e-commerce giant’s stock valued at $46,000 after acquiring an additional 180 shares during the period. Bridge Generations Wealth Management LLC grew its position in shares of Amazon.com by 2,330.0% in the third quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant’s stock valued at $53,000 after purchasing an additional 233 shares in the last quarter. Cooksen Wealth LLC raised its stake in shares of Amazon.com by 23.5% during the 2nd quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant’s stock valued at $54,000 after purchasing an additional 47 shares during the period. WHI TRUST Co LLC bought a new stake in shares of Amazon.com during the 4th quarter valued at $71,000. Finally, Sagard Holdings Management Inc. purchased a new stake in Amazon.com during the 2nd quarter worth about $79,000. Hedge funds and other institutional investors own 72.20% of the company’s stock.

About Amazon.com

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.