Amazon AWS cloud unit accelerates growth Jassy earnings Yahoo CNBC
Amazon $AMZN's AWS grew revenue 37% year over year last quarter, beating Wall Street's 31% estimate. Operating margin hit 39.4%, the highest in over a year, as Amazon raised 2026 capex guidance to $220 billion. Shares jumped more than 9%, Yahoo Finance and CNBC reported.
Amazon's cloud division AWS posted 37% year-over-year revenue growth in the June quarter, beating Wall Street's expectation of 31% growth, the company reported Thursday. AWS revenue reached $42.2 billion for the quarter, putting the unit on an annualized run rate of $169 billion. Operating income for the division rose to $16.6 billion from $10.2 billion a year earlier, lifting the operating margin to 39.4%, the highest level since early 2025. The results came even as Amazon raised its full-year 2026 capital expenditure guidance to $220 billion, with quarterly capex up 68% to $54.21 billion, largely tied to AI data center and chip investment. Amazon shares jumped more than 9% following the report, according to CNBC and Yahoo Finance. The margin expansion alongside record spending stands out against Google, which saw its stock sell off the previous week after disclosing similarly large capex plans and its first quarterly cash burn as a public company. AWS remains the largest cloud provider by revenue, giving it scale that smaller rivals lack when absorbing heavy AI infrastructure costs while still growing margins.