Amazon Stock Surges 9% as Cloud Growth Beats Expectations
Seattle, Thursday, 30 July 2026.
Amazon stock surged 9% on July 30, 2026, after AWS cloud revenue jumped 37% year-over-year, its fastest expansion since 2021, easily beating Wall Street’s 31% growth estimate.
Market Reaction to Q2 Earnings Report
Amazon.com Inc. (AMZN) shares experienced a significant surge, jumping 9% in trading on July 30, 2026, following the release of its second-quarter financial results [1]. This upward movement was primarily driven by the performance of Amazon Web Services (AWS), which recorded a 37% year-over-year revenue increase, significantly outpacing Wall Street projections of 31% growth [1]. The revenue for the quarter reached $200.61 billion, surpassing the estimated $196.47 billion, indicating robust demand across its core segments [1]. Earnings per share also exceeded expectations, reported at $5.75 compared to the $1.82 per share anticipated by analysts polled by LSEG [1]. This performance marks a substantial improvement from the $1.68 per share recorded a year earlier, representing a year-over-year growth rate calculated as 242.262 [1].
Cloud Computing and AI Infrastructure Demand
The cloud computing segment, AWS, generated $42.2 billion in revenue, exceeding the $40.54 billion expected by StreetAccount [1]. This 37% expansion marks the unit’s fastest growth rate since 2021, signaling strong enterprise demand for cloud computing and artificial intelligence infrastructure [1]. Amazon CEO Andy Jassy described AWS as “booming,” highlighting the contribution of artificial intelligence and homegrown chips units which both exceeded a $25 billion annual revenue run rate [1]. This focus on in-house chips, including the Trainium and Graviton brands, has become a newer growth pillar for the company, alongside its AI products like the Bedrock model marketplace targeted primarily for enterprises [1]. Prior to the report, analysts had forecast AWS sales growth of approximately 31.3% to $40.54 billion, making the actual result a notable beat [3][4].
Retail Performance and Prime Day Impact
In the North America segment, revenue grew 16% year over year to $116.2 billion during the second quarter, aided by the timing of the Prime Day discount event [1]. Amazon shifted this year’s Prime Day to June, compared to the typical July timeframe, which complicated comparisons to the previous year’s third quarter [1]. While Amazon does not disclose specific Prime Day revenue, U.S. sales across online retailers grew 9% to $26.4 billion during the weeklong event, contributing to the retail boost [1]. Excluding the impact of the Prime Day shift, third-quarter 2026 growth would be nearly 400 basis points higher, according to the company [1]. Overall revenue for the quarter was up 20% on the year, reaching approximately $201 billion, which aligns with the more specific figure of $200.61 billion reported in detailed filings [2].
Future Outlook and Capital Expenditure
Looking ahead, Amazon guided for revenue between $197 billion and $202 billion for the current quarter, while analysts polled by LSEG were expecting $204.1 billion [1]. Operating income in the third quarter is expected to range between $22.5 billion and $26.5 billion, compared to the $24.92 billion forecast by StreetAccount [1]. The company has committed to significant capital expenditures, with projections indicating up to $200 billion in spending for 2026 on data centers, servers, and chips [4]. This investment strategy is underpinned by multi-year AWS commitments from partners such as OpenAI and Anthropic, supporting the company’s aggressive expansion in AI infrastructure [4]. Net income for the second quarter was reported at $62.6 billion, which includes pre-tax income of $53.4 billion primarily from investments in AI lab Anthropic [1].