AMZN · Q2 FY2026
AMAZON COM INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $200.61B | $167.70B (yr ago) | Beat |
| EPS | $5.75 diluted | $1.68 diluted (yr ago) | Beat |
| Free Cash Flow | $45.39B (quarterly table) | $32.52B (yr ago) | Beat |
| Gross Margin | Not disclosed | Not disclosed (yr ago) | Miss |
| Operating Margin | 13.7% | 11.4% (yr ago) | Beat |
What changed
Revenue increased 19.6% year over year to $200.61B, while operating income rose 43.2% and operating margin expanded 2.3 percentage points to 13.7%. AWS was the principal change: sales accelerated to 36.8% growth and segment operating income increased 63.6%, although company-defined trailing-12-month free cash flow turned negative as AI infrastructure spending rose.
Impact on the investment thesis
There is no prior fair value to revise. We initiate fair value at $253 per share: faster AWS growth and higher operating profitability support the operating outlook, but the AI capital-spending surge and negative company-defined trailing-12-month free cash flow limit valuation upside.