Amazon Jumps 15% as AWS Growth Reaccelerates and Revenue Tops $200 Billion

The company's cloud unit grew 37%, its fastest in more than four years, and quarterly sales crossed $200 billion for the first time, though a large one-time gain on its Anthropic stake inflated the reported profit.

Amazon stock climbed about 15% on Friday, one of its steepest single-day gains in years, after second-quarter results beat across the operating lines. The numbers landed Thursday after the close. What moved the stock was the cloud.

Revenue crosses $200 billion

For the quarter ended June 30, Amazon posted net sales of $200.6 billion, up 20% from a year earlier. It was the first time the company’s quarterly revenue has topped $200 billion. Operating income rose to $27.5 billion, from $19.2 billion in the same period of 2025, and cleared what analysts had modeled. Both beat estimates.

AWS sets the pace

The cloud division carried the quarter. Amazon Web Services grew 37% from a year earlier to $42.2 billion, its fastest pace in eighteen quarters, and reached an annualized revenue run rate of $169 billion. Segment operating income climbed to $16.6 billion, up from $10.2 billion, and supplied the majority of Amazon’s total operating profit for the quarter. Management tied the strength to demand for artificial-intelligence computing and said the unit’s contracted backlog kept building. For a business the market had watched decelerate through 2024 and 2025, the return to acceleration was the number investors focused on.

A profit line that needs a footnote

The bottom line reads better than the business alone earned. Net income came to $62.6 billion, or $5.75 per diluted share, against $18.2 billion, or $1.68, a year earlier. Most of that jump was not operating income. The quarter included $53.4 billion in non-operating, pre-tax other income, tied mainly to Amazon’s stake in the AI developer Anthropic, a non-cash mark-up on the value of that holding. Strip it out, and the growth shrinks. The operating results, not the headline profit, drew the buying.

Back near a three-month high

Friday’s close of $271.58 left Amazon about 1% below its highest level of the past three months and 36% above the low over that stretch. The stock had already gained about 12% in the prior 30 days heading into the report. Trading volume told its own story. More than 129 million shares changed hands, over three times the 20-day average, the kind of turnover that marks a major repricing. Amazon’s report capped a heavy week of big-technology earnings; Apple reported the same Thursday evening and fell sharply the next day on a cautious outlook, a reminder that the same setup can cut both ways.

What Amazon guided

For the current quarter, Amazon guided to net sales of $197.0 billion to $202.0 billion, growth of 9% to 12% year over year, and operating income of $22.5 billion to $26.5 billion. The buildout has a cost. Free cash flow swung to an outflow of $7.6 billion over the trailing twelve months, driven by a $66.1 billion year-over-year rise in property and equipment purchases, much of it for data-center and AI capacity. Amazon’s next quarterly report, covering the September quarter, is expected in late October. The figures to track are whether AWS holds its new growth rate and how the spending flows through to free cash flow.

This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.