NEW YORK, August 10, 2026, 19:33 EDT – Amazon.com Inc. (AMZN) crossed the $3 trillion mark in market capitalisation as Amazon Web Services drove 60% of its operating profit.
- Amazon.com NASDAQ:AMZN rose 1.32% to close at $278.09 on Monday.
- The stock’s market value approached $3 trillion during the session.
- AWS accounted for 21% of sales in the quarter, while contributing 60% of operating income.
- Trailing free cash flow shifted to an outflow of $7.6 billion.
Amazon.com NASDAQ:AMZN hit approximately $3 trillion in market capitalization on Monday. Shares climbed 1.32% to $278.09, even as leading US indexes declined.
The achievement relies largely on a single segment. Amazon Web Services accounted for 21% of sales in the second quarter and generated 60% of operating income.
That combination accounts for the re-rating. AWS revenue increased by 37%, marking its quickest growth in 18 quarters. The operating margin climbed to 39.3%.
| Monday market comparison | Daily move | Close |
|---|---|---|
| Amazon NASDAQ:AMZN | up 1.32% | $278.09 |
| Microsoft NASDAQ:MSFT | higher by 1.21% | $506.06 |
| Alphabet Class A NASDAQ:GOOGL | rose 0.91% | — |
| Alphabet Class C NASDAQ:GOOG | up 0.67% | — |
| S&P 500 | edged down 0.06% | 7,753.11 |
| Nasdaq Composite | slipped 0.32% | 26,605.36 |
Amazon surpassed its two main publicly traded cloud rivals. The stock has gained around 19% so far this year and briefly topped the $3 trillion mark. Monday’s closing price was just 47 cents shy of its recent peak of $278.56.
Amazon extended its previous week’s rally after reporting July 30 results. The company’s quarterly sales exceeded $200 billion for the first time, while operating income increased at a faster pace than revenue.
| Second-quarter comparison | 2026 | 2025 | Change |
|---|---|---|---|
| Net sales | $200.6 billion | $167.7 billion | +20% |
| Operating income | $27.5 billion | $19.2 billion | +43% |
| AWS sales | $42.2 billion | — | +37% |
| AWS operating income | $16.6 billion | $10.2 billion | +63% |
| Trailing operating cash flow | $161.4 billion | $121.1 billion | +33% |
| Trailing free cash flow | -$7.6 billion | $18.2 billion | -$25.8 billion swing |
Amazon’s statement verifies its revenue, profit, and cash-flow numbers. Net income totaled $62.6 billion, with $53.4 billion of that stemming from pre-tax non-operating income. Most of the increase was due to Amazon’s investment in Anthropic.
Chief Executive Andy Jassy stated: “AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than $25 billion.” Amazon
The cloud unit’s finances still stand apart. AWS reported International sales of $42.2 billion, equaling the segment. However, AWS delivered operating income almost tenfold higher.
| Second-quarter segment mix | Sales | Operating income | Operating margin |
|---|---|---|---|
| North America | $116.2 billion | $9.1 billion | 7.8% |
| International | $42.2 billion | $1.7 billion | 4.0% |
| AWS | $42.2 billion | $16.6 billion | 39.3% |
| Amazon total | $200.6 billion | $27.5 billion | 13.7% |
The last two divisions together delivered an operating margin of 6.8%. AWS achieved an operating margin nearly sixfold higher. Segment data is sourced from Amazon’s earnings announcement.
Cash conversion serves as the balance. The value of property and equipment bought increased by $66.1 billion in twelve months. Amazon attributed the bulk of that growth to investment in artificial intelligence.
Investors are currently seeing benefits from the spending. J.P. Morgan noted that robust cloud expansion and increased backlogs have alleviated worries over AI investment returns. On Monday, the bank lifted its year-end target for the S&P 500 to 8,000.
| Third-quarter guide | Amazon outlook | Comparison |
|---|---|---|
| Net sales | $197 billion-$202 billion | Growth of 9%-12% |
| Net sales midpoint | $199.5 billion | — |
| Growth excluding Prime Day timing | Almost 400 basis points higher | Compared to the growth reported |
| Operating income | $22.5 billion-$26.5 billion | $17.4 billion for Q3 2025 |
| Operating income midpoint | $24.5 billion | 40.8% higher than Q3 2025 |
Amazon projects continued profit growth in the third quarter. The timing of Prime Day affects the headline sales comparison. The midpoint for operating income suggests a 40.8% rise.
Wall Street sentiment stays upbeat. At Monday’s price, there is less room for mistakes. Analysts’ average price target suggests a 12.5% potential increase.
| Analyst recommendations | Count or value | Share / move from $278.09 |
|---|---|---|
| Buy | 57 analysts | 95.0% |
| Hold | 3 analysts | 5.0% |
| Sell | 0 analysts | 0% |
| Consensus 12-month target price | $312.83 | +12.5% |
| Target price range | $218-$370 | -21.6% to +33.1% |
MarketBeat tracks 60 current analyst ratings, making up the recommendation mix. The target percentages listed above are updated based on Monday’s closing values. The official target range is still broad.
Risks. AWS expansion may decelerate with Microsoft and Alphabet boosting infrastructure. Substantial AI investment could keep free cash flow in the red. Retail appetite, tariffs, and energy expenses remain margin risks.
Looking to the coming week, $278.56 stands as the first price hurdle. The broader focus is on operating leverage. Amazon needs to maintain AWS at a 39.3% margin and restore free cash flow to positive territory.
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