Amazon ComAMZN

01AWS sales increased 37% in Q2 2026 and 33% for the six months ended June 30, 2026 compared to the comparable prior year periods The sales growth primarily reflects increased customer usage, partially offset by pricing changes primarily driven by long-term customer contracts AWS operating income increased due to increased sales, partially offset by spending on technology infrastructure that was primarily driven by additional investments to support AWS business growth Cash capital expenditures were $53.1 billion during Q2 2026, which primarily reflect investments in technology infrastructure (the majority of which is to support AWS business growth) We expect cash capital expenditures to increase in 2026

02North America sales increased 16% in Q2 2026 compared to the comparable prior year period Increased unit sales were driven largely by our continued focus on price, selection, and convenience for our customers, including from our fast shipping offers Fulfillment costs increased due to increased sales and investments in our fulfillment network, partially offset by operational efficiencies Shipping costs were $27.9 billion in Q2 2026 We seek to mitigate costs of shipping over time in part through achieving higher sales volumes, optimizing our fulfillment network, negotiating better terms with our suppliers, and achieving better operating efficiencies

03Amazon's operating cash generation allows it to place multi-billion-dollar bets on frontier AI companies without issuing equity or straining liquidity, positioning it to embed AI capabilities across retail, AWS, and devices faster than competitors who must choose between internal R&D and external partnerships. The Anthropic and OpenAI stakes represent optionality on AI model leadership funded from internally generated cash.

04Amazon's marketplace and Prime ecosystem generates recurring fee streams from sellers, advertisers, and subscribers layered on top of first-party retail. Third-party seller fees and advertising attach to transaction volume without proportional inventory risk, creating operating leverage as the platform scales.