Amazon Posts Record Q1 Revenue, AWS Growth Hits 15-Quarter High
Amazon reported record Q1 2026 revenue of $181.5 billion, up 17% YoY, as AWS posted its fastest growth in 15 quarters, driving record profits and margins.
Key Numbers
Amazon (NASDAQ: AMZN) reported first-quarter 2026 results, posting record revenue of $181.5 billion, up 17% year-over-year. The strong performance was fueled by AWS's fastest growth in 15 quarters, contributing to record profits and margins.
Key Financial Results
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $181.5B | $155.1B | +17% |
| Net Income | $12.4B | $8.9B | +39% |
| EPS | $1.20 | $0.86 | +40% |
| AWS Revenue | $28.3B | $23.5B | +20% |
Highlights from the Release
- AWS Growth: AWS revenue grew 20%, the fastest quarterly growth in 15 quarters, driven by demand for AI and cloud services.
- Operating Margin: Operating margin improved to 12.5% from 10.8% in Q1 2025, due to operational efficiency and high-margin services growth.
- Free Cash Flow: Trailing twelve-month free cash flow reached $22.5B, up 35% year-over-year.
Guidance
Amazon expects Q2 2026 revenue between $175B and $185B, with continued investment in AI infrastructure and AWS expansion. Capital expenditures are expected to rise 10% from last year.
Stock Impact
Amazon shares rose 2.5% in after-hours trading following the earnings beat, as revenue and earnings exceeded analyst estimates. The market reacted positively to AWS's strong growth and margin improvement.
What This Means for Investors
Amazon's results demonstrate the strength of its diversified business model, with retail performing well and AWS leading in cloud and AI. Investors should monitor capital expenditure trends and the impact of AI investments on future margins.
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