NEW YORK, July 31, 2026, 05:11 EDT — U.S. stocks move in premarket trading
- Amazon.com, Inc. NASDAQ:AMZN was quoted preliminarily at $264.00, a rise of 12.1%, as of 04:49 EDT.
- AWS accounted for 60.5% of group operating profit, while contributing 21.1% of total sales.
- An initial estimate suggests that if the increase persists, approximately $307 billion could be added to equity value.
Amazon shares were pointed up 12.1% at $264.00 ahead of Friday’s opening bell, after AWS reported its strongest growth in 18 quarters. The advance came after a 3.9% increase on Thursday.
Initial estimates suggest the implied rise in equity value is close to $307 billion. This figure is roughly 15 times greater than Amazon’s $20 billion boost in capital expenditures. It does not indicate a return, but reflects the magnitude of investor relief.
| Market indicator | Previous benchmark | Latest | Change |
|---|---|---|---|
| Amazon stock price | $235.50 Thursday close | $264.00 premarket | +12.1% |
| 2026 capex target | $200 billion | $220 billion | +$20 billion |
| AWS order backlog | $364 billion, previous quarter | $496 billion | +36.3% |
| Trailing free cash flow | $18.2 billion inflow, previous year | $7.6 billion outflow | Decreased by $25.8 billion |
Figures for premarket price and equity value are initial estimates. Benchmarks rely on varying reference periods.
The reassurance is due to AWS’s operating profit strength rather than overall net income. AWS accounted for 60.5% of operating profit while making up just 21.1% of total sales—a concentration that supports ongoing investment.
Sales for the second quarter increased 19.6% to $200.6 billion. Operating income was up 43.2% at $27.5 billion. AWS saw a 63.6% jump in operating income.
| Second-quarter metric | 2025 | 2026 | Change |
|---|---|---|---|
| Net sales | $167.702 billion | $200.606 billion | +19.6% |
| Operating income | $19.171 billion | $27.461 billion | +43.2% |
| AWS sales | $30.873 billion | $42.232 billion | +36.8% |
| AWS operating income | $10.160 billion | $16.621 billion | +63.6% |
The percentages have been derived from figures published by Amazon.
Significantly, AWS generated an additional $11.36 billion in revenue compared with the previous year while increasing operating profit by $6.46 billion. The resulting incremental margin was about 57%.
| Second-quarter segment | Revenue | Revenue share | Operating income | Profit share | Operating margin |
|---|---|---|---|---|---|
| North America | $116.177 billion | 57.9% | $9.123 billion | 33.2% | 7.9% |
| International | $42.197 billion | 21.0% | $1.717 billion | 6.3% | 4.1% |
| AWS | $42.232 billion | 21.1% | $16.621 billion | 60.5% | 39.4% |
| Consolidated | $200.606 billion | 100.0% | $27.461 billion | 100.0% | 13.7% |
Reported segment results form the basis for calculating shares and margins.
Chief Executive Andy Jassy said, “AWS is booming.” He noted that Amazon is still running short on capacity even with increased investment. The limiting factor continues to be demand. Amazon
AWS backlog rose 36.3% from the previous quarter to reach $496 billion. The majority of compute capacity for 2027 was already reserved by customers, with some commitments extending into 2028.
The charges come upfront. Free cash flow after expenses moved to a $7.6 billion outflow. Spending on property and equipment increased to $66.1 billion, largely driven by artificial intelligence investments.
Amazon begins its data center investments about two years ahead of launch. Jassy stated that the payback period for AI servers is usually less than three years, with revenue streams starting afterwards.
Headline net income provided limited insight, coming in at $62.6 billion, though this figure factored in $53.4 billion of non-operating pre-tax income. According to Amazon, the majority of the gain was attributed to its investment in Anthropic.
The remainder of Amazon’s business posted gains as well. Sales in North America climbed 16%, with international sales up 15%. Advertising revenue grew 26% to $19.8 billion.
The cloud performance reflected faster growth seen across the industry. Microsoft Corp. NASDAQ:MSFT recorded a 43% rise in Azure, while Alphabet Inc. NASDAQ:GOOGL reported Google Cloud growth of 82%.
| Company and cloud measure | Revenue growth | Disclosed revenue | Operating margin | First material stock reaction |
|---|---|---|---|---|
| Amazon — AWS | 36.7% | $42.2 billion | 39.4% | +12.1% premarket, initial |
| Microsoft — Azure and other cloud services | 43% | Not disclosed | Not disclosed | +15.5% during subsequent session |
| Alphabet — Google Cloud | 82% | $24.8 billion | 35.6% | Roughly -3% post close |
Definitions of cloud and trading periods vary, making direct comparison between rows not possible.
“There were concerns about market share losses on AWS, but that’s been put to bed now,” said Dan Morgan, portfolio manager at Synovus Trust. All three platforms are seeing increased demand. Amazon’s advantage lies in turning profit. Reuters
Amazon projected third-quarter revenue between $197 billion and $202 billion, suggesting an increase of 9% to 12%. The company’s operating income outlook stood at $22.5 billion to $26.5 billion.
Nasdaq 100 futures advanced 1.1% in premarket trading, while S&P 500 futures increased by 0.45%. Amazon’s earnings supported gains in technology stocks.
Risks: Premarket gains could unwind once the main session starts. Free cash flow stays in the red, and memory-chip expenses have driven up projected outlays. Net income was impacted by equity gains, while third-quarter revenue growth is set to decelerate.
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