Amazon Web Services (AWS) reported $42.2 billion in sales for the quarter ended June 30, 2026, up 37% from a year earlier. CEO Andy Jassy gave the more precise rate as 36.7%; Amazon’s earnings release rounds that to 37%. The company said it was AWS’s fastest growth in 18 quarters. Amazon attributes accelerating demand to both AI and core cloud services, but it has not disclosed how much of AWS’s growth AI caused.
How much did AWS grow in Q2 2026?
AWS sales reached $42.2 billion in the second quarter of 2026, a 37% year-over-year increase according to Amazon’s July 30 earnings release. Jassy stated the precise rate, 36.7%, in the company’s quarterly results announcement. The difference is rounding, not a separate measure.
Amazon also reported a $169 billion annualized AWS revenue run rate. That is a run-rate measure, not the quarter’s sales and not a forecast of guaranteed future revenue. AWS operating income was $16.6 billion for the quarter.
| Measure | Q2 2026 result | What it means |
|---|---|---|
| AWS sales | $42.2 billion | Revenue recognized for the quarter |
| AWS sales growth | 37% year over year; 36.7% as stated by CEO Andy Jassy | Quarterly sales compared with Q2 2025 |
| AWS annualized revenue run rate | $169 billion | Annualized pace, not quarterly sales |
| AWS operating income | $16.6 billion | Segment operating profit for the quarter |
Why is AWS growing so fast?
Amazon says AI demand is boosting AWS alongside demand for its established cloud services. In Jassy’s account, companies want to run AI inference close to the applications and data they already use. That creates demand for computing capacity, storage, vector databases, model development, inference and AI agents.
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He cited AWS offerings including SageMaker AI, Bedrock and Bedrock AgentCore. Amazon’s explanation is that AI workloads and core cloud usage reinforce one another: AI adds infrastructure needs, while customers’ broader cloud applications and data support AI deployment. This is management’s description of the business, not an independently measured breakdown of what caused the quarter’s growth.
How does AWS growth compare with recent quarters?
AWS growth accelerated over the three most recently reported quarters in Amazon’s sequence: 24% in Q4 2025, 28% in Q1 2026 and 36.7% in Q2 2026. Amazon characterized each as its fastest growth in 13, 15 and 18 quarters, respectively. The prior-quarter figures and comparisons appear in Amazon’s Q1 2026 results and Q4 2025 results.
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| Quarter | AWS year-over-year sales growth | Amazon’s fastest-growth comparison |
|---|---|---|
| Q4 2025 | 24% | Fastest in 13 quarters |
| Q1 2026 | 28% | Fastest in 15 quarters |
| Q2 2026 | 36.7% (37% rounded in the release) | Fastest in 18 quarters |
How much of AWS growth comes from AI?
Amazon has not published a figure showing what share of AWS’s Q2 sales growth came from AI. Jassy said the company’s AI business and chips business each exceeded a $25 billion annual revenue run rate and were each growing at triple-digit year-over-year rates. These are company-reported annualized run rates, not separate quarterly sales figures, and they do not quantify AI’s contribution to the 36.7% AWS growth rate.
Jassy summarized the results this way: “AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion,” according to Amazon’s earnings release.
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What do the results say about Amazon’s finances?
Amazon’s total net sales were $200.6 billion, up 20% year over year. The company reported net income of $62.6 billion, but that headline figure requires context: the quarter included $53.4 billion in non-operating pre-tax other income, primarily from investments in Anthropic. Net income therefore should not be read as though it came entirely from ordinary operations.
Amazon’s trailing-twelve-month free cash flow was negative $7.6 billion. The company said the decline was driven primarily by a $66.1 billion year-over-year increase in purchases of property and equipment, net of sale proceeds and incentives, primarily reflecting AI investment. This cash-flow figure covers the trailing twelve months, not Q2 alone. AWS’s $16.6 billion operating income is a different measure and should not be conflated with Amazon’s company-wide net income or free cash flow. The figures and company explanation are in the Q2 results release.
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