Amazon’s Q1 2026 earnings beat estimates by 68%, driven by 28% AWS growth and high-margin AI infrastructure demand.
Amazon’s market capitalization reached $2.6 trillion on July 2, 2026, as shares closed at $242.67. The valuation reflects a shift toward higher-margin businesses, particularly cloud and AI infrastructure.
Q1 2026 revenue rose 16.61% year over year to $181.52 billion, while earnings per share of $2.78 surpassed estimates by 68.18%. Operating income climbed 29.6% to $23.85 billion, with AWS revenue surging 28% to $37.59 billion, the fastest growth in 15 quarters.
The report included a $16.8 billion pre-tax gain from Anthropic holdings, though operating margins remained strong at 13.1% for the company and 37.7% for AWS. Analysts maintain a bullish outlook, with 66 rating the stock a Buy or higher and targeting $312.