Amazon reported first quarter 2026 revenue of $181.5 billion, an increase of 17% year-over-year, with diluted EPS of $2.78. The results surpassed analyst expectations for both revenue and earnings, though net income was significantly boosted by a pre-tax gain of $16.8 billion from its investment in Anthropic.
Key Highlights
- Amazon Web Services (AWS) revenue growth accelerated to 28% year-over-year, reaching $37.6 billion and exceeding estimates as demand for AI workloads increased.
- Operating income increased 30% to $23.9 billion, with operating margin expanding to 13.1% from 11.8% in the prior year, driven by profitability gains across all segments.
- Trailing-twelve-month free cash flow declined to $1.2 billion from $25.9 billion a year ago, heavily impacted by a $59.3 billion year-over-year increase in capital expenditures for AI infrastructure.