Amazon Shares Rise as AWS Cloud Sales Hit Fastest Growth in 18 Quarters

Amazon delivered robust financial results for its fiscal second quarter, buoyed by surging demand for its cloud computing services. According to the reporting, net sales climbed to $200.6 billion compared with $167.7 billion in the same period a year ago, surpassing analyst expectations of $197.03 billion.

Net income for the three-month period ending June 30 reached $62.65 billion, or $5.75 per share, jumping significantly from $18.16 billion, or $1.68 per share, in the year-ago period. Despite the strong quarterly showing, the company offered a cautious sales outlook for the current quarter, projecting net sales between $197 billion and $202 billion, while analysts had anticipated $203.9 billion according to FactSet. Even with the conservative forecast, Amazon shares rose more than 7% in after-hours trading.

AWS Cloud Unit Posts Fastest Growth in 18 Quarters

The standout performer for the quarter was Amazon Web Services. Sales in the cloud computing unit rose 37% during the April–June period, accelerating from the 28% growth rate recorded in the previous quarter and marking the fastest pace of expansion in 18 quarters.

In a statement released on Thursday, Amazon CEO and president Andy Jassy pointed to extensive momentum across the division. In the statement, Jassy said AWS is “booming” and noted that its AI and chips businesses each eclipsed run rates of more than $25 billion. Jassy also noted that in stores, the company set record delivery speeds for Prime members during the first half of the year, with 40% more items delivered either on the same day or overnight.

Massive AI Investments and Retail Logistics Expansion

The quarterly earnings report arrived as investors closely monitor whether Amazon’s capital expenditures are yielding returns. The company planned a 60% increase in capital spending for the year, targeting $200 billion toward artificial intelligence, robotics, semiconductors, and satellites, up from $128 billion last year. That heavy spending raised concerns among investors regarding cash flows and potential productivity returns.

US Tech Giant Shares Rise 1.88%

Broader industry reports from Google parent Alphabet and Microsoft also highlighted heavy capital outlays for cloud and AI infrastructure. Alphabet reported an 82% jump in its cloud business but saw its stock drop after raising its full-year capital expenditure forecast to a range of $195 billion to $205 billion. Meanwhile, Microsoft reported strong Azure cloud growth without announcing major spending increases, which helped boost its shares.

Amazon has further integrated its technology operations through strategic partnerships, signing major agreements in April with OpenAI, Anthropic, and Meta. The company announced in April a major expansion of its partnership with ChatGPT maker OpenAI just a day after that firm loosened ties with Microsoft.

Tariffs, Shipping Costs, and Delivery Speed Dethrone Walmart

Alongside technological expansions, Amazon continues to refine its physical logistics. By combining robotics, artificial intelligence, and more efficient warehousing, the company accelerated order delivery times. That speed helped Amazon dethrone Walmart in February, capturing status as the nation’s largest company by revenue according to Fortune rankings of the top 500 U.S. corporations.

In May, Amazon announced it was rapidly opening small order processing hubs across dozens of U.S. and foreign cities to facilitate 30-minute deliveries. However, external pressures remain. The company faces higher tariff costs stemming from President Donald Trump’s foreign trade policies, alongside climbing shipping expenses driven by oil and fuel price fluctuations resulting from the Iran war.