Amazon Stock Soars After AWS Growth Accelerates, Beating Q2 Forecasts

Amazon (AMZN) stock surged more than 12% in pre-open trading after the technology giant reported second-quarter 2026 results that significantly beat Wall Street estimates, fueled by accelerating growth in its crucial cloud computing division.

Blockbuster Earnings Report

Amazon announced quarterly results that comprehensively topped analyst forecasts. The company's performance highlights strong execution across its business segments, leading to a decisive beat on both revenue and profit.

Key figures from the Q2 2026 report include:

• Total Net Sales: $200.6 billion, a 20% year-over-year increase, compared to a consensus estimate of approximately $196.5 billion.
• Earnings Per Share (EPS): $5.75, vastly exceeding the $1.82 Wall Street had expected.
• Operating Income: $27.5 billion, marking a 43% rise from the same period in the prior year.

AWS Growth Accelerates on AI Demand

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The standout performer for investors was Amazon Web Services (AWS). The cloud division's revenue grew 37% year-over-year to $42.2 billion, well above the forecasted $40.5 billion. This marks the fifth consecutive quarter of accelerating growth for AWS and its fastest rate of expansion since late 2021.

CEO Andy Jassy described demand for AWS as "booming," attributing the momentum to surging customer interest in artificial intelligence capacity. In response, Amazon raised its full-year 2026 capital expenditure guidance from $200 billion to $220 billion to meet the growing demand for AI computing.

Upbeat Outlook and Regulatory Win

Amazon provided strong forward-looking guidance, projecting third-quarter operating income to be between $22.5 billion and $26.5 billion. This significantly surpasses the $17.4 billion reported in the prior-year period and bolstered investor confidence.

Adding to the positive sentiment, Amazon’s autonomous vehicle unit, Zoox, received a commercial exemption from the National Highway Traffic Safety Administration (NHTSA) on July 30. The approval allows Zoox to deploy up to 2,500 of its steering-wheel-free robotaxis annually, a key regulatory milestone. Following the report, BMO Capital raised its price target on the stock to $360 from $355, citing the robust AWS acceleration.