Amazon.com (NASDAQ:AMZN) Announces Quarterly Earnings Results

Amazon.com, Inc. (NASDAQ:AMZN) issued its quarterly earnings data on Thursday. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping 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 company had revenue of $200.61 billion for the quarter, compared to the consensus estimate of $197.03 billion. During the same period last year, the firm posted $1.68 EPS. Amazon.com’s revenue for the quarter was up 19.6% on a year-over-year basis.

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 Trading Up 3.9%

Shares of AMZN stock opened at $235.50 on Friday. The business’s fifty day moving average price is $245.59 and its 200 day moving average price is $235.97. The firm has a market capitalization of $2.53 trillion, a PE ratio of 28.17, a P/E/G ratio of 1.70 and a beta of 1.46. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01. Amazon.com, Inc. has a 1-year low of $196.00 and a 1-year high of $278.56.

Insider Activity at Amazon.com

In related news, 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 sale, the vice president owned 119,780 shares of the company’s stock, valued at approximately $31,427,876.40. The trade was a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 1,000 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $239.77, for a total transaction of $239,770.00. Following the sale, the chief executive officer directly owned 484,527 shares in the company, valued at approximately $116,175,038.79. This represents a 0.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 135,719 shares of company stock worth $36,438,002. 8.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Amazon.com

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Union Savings Bank raised its position in shares of Amazon.com by 0.4% in the second quarter. Union Savings Bank now owns 10,723 shares of the e-commerce giant’s stock worth $2,510,000 after acquiring an additional 45 shares during the period. Doheny Asset Management CA grew its position in shares of Amazon.com by 0.3% during the 2nd quarter. Doheny Asset Management CA now owns 17,821 shares of the e-commerce giant’s stock valued at $3,910,000 after acquiring an additional 45 shares during the period. Cadence Wealth Management LLC increased its stake in shares of Amazon.com by 3.5% in the 3rd quarter. Cadence Wealth Management LLC now owns 1,328 shares of the e-commerce giant’s stock valued at $292,000 after purchasing an additional 45 shares in the last quarter. Cooksen Wealth LLC raised its holdings in Amazon.com by 23.5% in the 2nd quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant’s stock worth $54,000 after purchasing an additional 47 shares during the period. Finally, Rialto Wealth Management LLC raised its holdings in Amazon.com by 2.8% in the 3rd quarter. Rialto Wealth Management LLC now owns 1,741 shares of the e-commerce giant’s stock worth $382,000 after purchasing an additional 47 shares during the period. 72.20% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

AMZN has been the topic of several recent research reports. The Goldman Sachs Group restated a “buy” rating and issued a $375.00 price target on shares of Amazon.com in a research report on Friday. Weiss Ratings raised Amazon.com from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, May 6th. Arete Research lifted their target price on Amazon.com from $301.00 to $310.00 and gave the company a “buy” rating in a research note on Monday, May 18th. TD Cowen reissued a “buy” rating on shares of Amazon.com in a report on Friday. Finally, Pivotal Research restated a “buy” rating and set a $333.00 price target on shares of Amazon.com in a research note on Friday. 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 data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $316.29.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Record quarter and major earnings beat: Amazon reported revenue of $200.6 billion, up approximately 20% year over year, while adjusted earnings per share reached $5.75 versus the $1.82 consensus estimate. Operating income rose 43% to $27.5 billion. Amazon.com Announces Second Quarter Results
• Positive Sentiment: AWS growth validates AI investments: AWS revenue jumped 37% to $42.2 billion, its fastest growth in more than four years and ahead of expectations. New cloud arrangements with Meta and OpenAI, along with strong enterprise AI demand, reinforced the view that Amazon is beginning to monetize its heavy infrastructure spending. Amazon jumps as AWS growth soothes fears over rising AI spending
• Positive Sentiment: Advertising and retail also contributed: Advertising revenue climbed 26% to nearly $20 billion, while North American sales increased 16%, suggesting that Amazon’s profit growth is not dependent solely on AWS. Amazon Thrives On Big Q2 For AI, Advertising Revenue Climbs
• Positive Sentiment: Analysts raised targets: Baird lifted its target to $310, JPMorgan to $365, and Bank of America to $320, citing accelerating AWS growth, AI momentum, and potential margin expansion. Citi maintained its Buy rating and $325 target. J.P. Morgan Amazon price target
• Neutral Sentiment: Zoox reached a regulatory milestone: Amazon’s autonomous-vehicle unit received approval to begin limited paid robotaxi rides, providing a potential long-term growth option but little immediate earnings impact. Amazon’s Zoox wins first US approval for paid robotaxis
• Negative Sentiment: Capital spending remains the key risk: Amazon’s approximately $220 billion 2026 spending plan and reported AI-related cost overruns could pressure free cash flow. Third-quarter revenue guidance of $197 billion to $202 billion also came in below the $204.6 billion analyst consensus, tempering the otherwise bullish outlook.

Amazon.com Company Profile

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.