- Prev. close
- $259.54
- Volume
- 9M
- Market cap
- $2.8T
Stock and sector context
Consumerinflow- Sector comparison
- Amazon changed +0.54%. The 8 covered Consumer stocks in US averaged +0.22%, with estimated sector flow of inflow.
- Variables to watch
- Consumer sentimentInflationTariffs
- Risks to check
- Consumers pulling back as prices rise
- Currency swings
- Sudden shifts in rates, oil and other macro variables
This compares price changes among covered stocks in the same market. It does not establish why prices moved. Variables and risks are sector reference lists.
Why a candidate
Match 30/100The match score marks how many conditions overlap on a 0 to 100 scale: the 52-week range, valuation metrics, price change and volume. It is not a probability of rising or a forecast return.
Today's read
Amazon scores 30 out of 100 on today's InverseOne match ranking, 15 of 30 in the US large-cap universe. It sits in the bottom 71% of its one-year price range, a neglected zone. Today's move of +0.54% came with money flowing in, alongside the Consumer sector. Scores are estimates built from price and volume, a starting point for research rather than a trading signal.
Data basis: 2026-10-13 close, 10-14 00:20 KST updated, For reference only, not advice
Same-sector stocks, Consumer
StartupXO news featuring this company
Company research
Researched 2026-09-23 07:50 KSTIn the quarter Amazon's net income swelled to $62.6 billion, its trailing twelve-month free cash flow turned into a $7.6 billion outflow.
Amazon's second-quarter 2026 net sales rose 20% from a year earlier to $200.61 billion, and operating income rose 43% to $27.46 billion. AWS, the cloud segment, produced $16.62 billion, or 60.5%, of that operating income, and its sales growth excluding currency effects has quickened for four straight quarters to 37%. Net income of $62.65 billion includes $53.42 billion of non-operating income, about $50.5 billion of which is an upward revaluation of Amazon's preferred stock in Anthropic. Over the trailing twelve months, capital spending exceeded operating cash flow and free cash flow swung to a $7.60 billion outflow.
Key figures
- Q2 net sales
- $200.61 billion
- Q2 2026
- Operating income
- $27.46 billion
- Q2 2026
- AWS operating income
- $16.62 billion
- Q2 2026
- Net income
- $62.65 billion
- Q2 2026
- Trailing twelve-month free cash flow
- -$7.60 billion
- 2026-06-30
- Unrecognized long-term contract commitments
- About $496 billion
- 2026-06-30
AWS Is 21% of Sales and 60% of Operating Income
Amazon reports three segments: North America, International and AWS, its cloud business. In the second quarter of 2026, reported on July 30, North America brought in $116.18 billion of sales, International $42.20 billion and AWS $42.23 billion. AWS made up 21% of total net sales of $200.61 billion. Operating income ranks the segments differently. Of the company's $27.46 billion in operating income, AWS contributed $16.62 billion, or 60.5%. North America earned $9.12 billion and International $1.72 billion. By revenue line, online stores grew 15% to $70.43 billion and third-party seller services, which include the commissions and fees Amazon charges outside sellers, grew 16% to $46.78 billion. Advertising rose 26% to $19.81 billion, the fastest-growing line after AWS. Subscription services, including Prime, grew 12% to $13.73 billion. The quarterly report attributes sales growth in both retail segments to higher unit sales, including sales by third-party sellers, along with advertising and subscription services.
Q2 operating income by segment ($ millions)
- North America9123
- International1717
- AWS16621
AWS Growth Has Quickened for Four Straight Quarters
Excluding currency effects, AWS sales grew 17% in both the first and second quarters of 2025. Growth then ran 20%, 24% and 28% before reaching 37% in the second quarter of 2026. Quarterly sales rose from $30.87 billion a year earlier to $42.23 billion, and segment operating income from $10.16 billion to $16.62 billion. The 10-Q credits increased customer usage, partly offset by pricing changes driven mainly by long-term customer contracts. On the profit side, spending on technology infrastructure to support AWS growth absorbed part of the added sales. Revenue already under contract is large. Commitments in contracts with original terms longer than one year that had not yet been recognized as revenue stood at about $496 billion at the end of June, primarily related to AWS, with a weighted-average remaining life of 6.4 years. According to the same filing, AWS expanded its existing $38.0 billion multi-year commitment with OpenAI by $100.0 billion over eight years in the first quarter, and in the second quarter expanded its existing multi-year commitment with Anthropic by more than $100.0 billion over ten years. Both include contractual obligations tied to the performance of AWS chips.
AWS sales growth excluding currency effects
%$53.4 Billion From Outside the Business
Second-quarter net income was $62.65 billion, about $35.2 billion more than operating income. The gap came from other income of $53.42 billion, against $1.12 billion a year earlier. The 10-Q says roughly $50.5 billion of that was an upward adjustment to Amazon's nonvoting preferred stock in Anthropic, reflecting observable changes in price related to Anthropic's fundings. It is a change in valuation, not cash received. Taxes followed the valuation: the $27.76 billion first-half tax provision includes $15.9 billion of net discrete tax expense, primarily attributable to the Anthropic adjustments. From the third quarter of 2023 through the fourth quarter of 2025, Amazon invested $8.0 billion in Anthropic convertible notes, converting portions into nonvoting preferred stock in the first quarters of 2025 and 2026. In the second quarter it bought $5.0 billion of Series G and $5.0 billion of Series H nonvoting preferred stock. It also agreed to a financing facility of up to $20.0 billion, which the Series H purchase reduced to $15.0 billion. The preferred stock was carried at about $92.5 billion at the end of June, up from $14.8 billion six months earlier. The convertible notes had an estimated fair value of about $97.9 billion, and their $92.0 billion unrealized gain sits in accumulated other comprehensive income rather than net income. With OpenAI, Amazon bought $15.0 billion of Series C preferred stock in the first quarter and committed to buy $35.0 billion more. It had invested $28.7 billion by the end of June and funded the remaining $21.3 billion after the quarter closed.
From Q2 operating income to pre-tax income ($ millions)
$169 Billion of Capital Spending Outran Operating Cash Flow
Operating cash flow for the trailing twelve months was $161.40 billion, up 33%. Purchases of property and equipment over the same period, net of proceeds from sales and incentives, came to $169.01 billion. That leaves free cash flow at an outflow of $7.60 billion, compared with an inflow of $18.18 billion a year earlier. The earnings release attributes the decline primarily to a $66.1 billion year-over-year increase in capital spending. Cash capital expenditures in the second quarter alone were $53.1 billion, compared with $31.4 billion a year earlier, and the 10-Q says they primarily reflect technology infrastructure, the majority of it to support AWS growth. Borrowing rose alongside. Proceeds from short-term and long-term debt totaled $82.4 billion in the first half, and long-term debt grew from $65.65 billion at the end of 2025 to $128.89 billion at the end of June. Second-quarter interest expense was $1.31 billion, compared with $516 million a year earlier. Amazon says it expects additional financing activities in 2026, and on September 14 it closed the sale of £4.25 billion of sterling notes maturing between 2029 and 2045. For the third quarter it guides to net sales of $197.0 billion to $202.0 billion and operating income of $22.5 billion to $26.5 billion, adding that growth would be nearly 400 basis points higher if Prime Day were excluded from both years.
Trailing twelve-month free cash flow at quarter end ($ millions)
Common questions
- Why was Amazon's Q2 net income so much larger than its operating income?
- Because of $53.42 billion of other income that came from outside operations. According to the 10-Q, about $50.5 billion of it was an upward adjustment to Amazon's nonvoting preferred stock in Anthropic, reflecting observable price changes in Anthropic's fundings, and no cash came in with it. Net income of $62.65 billion therefore exceeded operating income of $27.46 billion by about $35.2 billion.
- How much of Amazon's operating income comes from AWS?
- 60.5% in the second quarter of 2026. AWS earned $16.62 billion of the company's $27.46 billion in operating income, while North America earned $9.12 billion and International $1.72 billion. AWS accounts for 21% of net sales.
- Why did Amazon's free cash flow turn negative?
- Because capital spending now exceeds operating cash flow. In the twelve months to June 30, operating cash flow was $161.40 billion, while purchases of property and equipment net of proceeds and incentives were $169.01 billion. The earnings release cites a $66.1 billion year-over-year increase in that spending as the main reason.
Sources
- 1.Second quarter 2026 results (Form 8-K, Exhibit 99.1) U.S. Securities and Exchange Commission EDGAR, as of 2026-07-30
- 2.Quarterly report for the period ended June 30, 2026 (Form 10-Q) U.S. Securities and Exchange Commission EDGAR, as of 2026-07-31
- 3.Closing of sterling-denominated notes offering (Form 8-K) U.S. Securities and Exchange Commission EDGAR, as of 2026-09-14
Reference information compiled from public material. Not investment advice; decisions and their consequences rest with the investor.
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- It sits at 71 in its 52-week range.
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