Amazon is heading into the fin

Amazon is heading into the final months of 2026 with AWS and advertising as the main growth drivers, while investors weigh whether its heavy AI spending can keep pushing the stock higher.

Second-quarter sales rose 20% year over year to $200.6 billion, and operating income jumped 43% to $27.5 billion, mostly on the back of AWS. AWS revenue climbed 37% to $42.2 billion, with operating income up 64% to $16.6 billion. The backlog expanded to $496 billion from $364 billion in the first quarter, which gives a bit more visibility into future revenue.

The company now expects 2026 capex of around $220 billion, up from its earlier estimate of $200 billion, while free cash flow came in at negative $7.7 billion for the second quarter. Deutsche Bank noted that much of AWS's 2027 capacity is already reserved, with additional commitments extending into 2028.

Advertising remains another growth engine, with revenue up 26% to $19.8 billion.

$Amazon.com(AMZN)$

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