Amazon.com Inc (NASDAQ:AMZN) shares rose about 8% in after-hours trading after the company reported second-quarter results that topped Wall Street expectations, driven by strong growth in its cloud computing business and higher operating profit.
The e-commerce and cloud giant reported second-quarter earnings of $5.75 per diluted share, well above the Wall Street consensus estimate of $1.82.
Revenue rose 20% year over year to $200.6 billion, exceeding analysts' expectations of about $196.9 billion and above the company's guidance range of $194 billion to $199 billion.
Operating income climbed 43% year over year to $27.5 billion, surpassing the company's guidance range of $20 billion to $24 billion.
Net income increased to $62.6 billion from $18.2 billion a year earlier, helped by $53.4 billion in non-operating pre-tax other income, primarily related to Amazon's investments in artificial intelligence startup Anthropic.
Amazon Web Services (AWS) remained a key growth driver, with revenue increasing 37% year over year to $42.2 billion, marking its fastest growth rate in 18 quarters. AWS operating income rose to $16.6 billion from $10.2 billion a year earlier.
North America sales increased 16% to $116.2 billion, while international sales rose 15% to $42.2 billion.
Operating cash flow over the trailing 12 months increased 33% to $161.4 billion. Free cash flow, however, turned negative at an outflow of $7.6 billion, compared with an inflow of $18.2 billion a year earlier, as capital spending increased significantly. Amazon said purchases of property and equipment rose by $66.1 billion year over year, primarily reflecting investments in artificial intelligence infrastructure.
"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," Amazon CEO Andy Jassy said in a statement.
For the third quarter, Amazon expects net sales of $197 billion to $202 billion, representing year-over-year growth of 9% to 12%, and operating income of $22.5 billion to $26.5 billion, compared with $17.4 billion in the year-earlier period. The company said the sales outlook includes an expected foreign exchange headwind of about 80 basis points.
