Amazon Profit Surges as AWS Sales Rise 37%

Amazon reported a significant surge in profit, with fiscal second-quarter net income reaching $62.65 billion, driven by a 37% increase in AWS sales, the fastest growth in 18 quarters. Net sales rose 20% to $200.6 billion, exceeding analyst expectations of $197.03 billion. The company’s AI and chips businesses also saw substantial growth, each surpassing $25 billion run rates. However, Amazon issued a cautious sales outlook for the current quarter, citing concerns over its planned $200 billion investment in AI, robotics, semiconductors, and satellites. Despite this, shares rose more than 7% in after-hours trading. The company’s CEO, Andy Jassy, noted that AWS is ‘booming’ and highlighted the company’s record delivery speeds for Prime members, with 40% more items delivered either same-day or overnight. Amazon’s results underscored growing demand for its services and technology, with the company signing big deals with OpenAI, Anthropic, and Meta in April. However, investors remain concerned about the impact of increased spending on AI and cloud computing on the company’s cash flows and profitability.