Amazon reports 20% jump in Q2 sales as AWS revenue rises 37%

Amazon’s latest quarterly report showed a broad improvement in top-line growth, with companywide sales rising 20% year over year while AWS revenue increased 37%. The results reinforce how much of Amazon’s current earnings momentum is tied to its cloud business, even as the company continues to spend aggressively on technology infrastructure.

The clearest announcement for investors was the scale of AWS profitability inside the Amazon operating model. According to the earnings coverage, AWS generated 61% of Amazon’s operating income, underlining that the cloud segment remains the primary engine for the company’s profit pool.

Amazon’s report also pointed to sustained investment intensity. The coverage said trailing 12-month capital spending reached $169 billion, a level that suggests Amazon is continuing to expand data-center capacity and related systems to support growing customer workloads, including demand connected to generative AI and other AI applications.

That spending intensity showed up in cash flow. The coverage reported that free cash flow was below zero, meaning operating cash generation after capital expenditures was negative over the measurement period. For Amazon, this is a key metric because it reflects the net cash impact of its infrastructure build-out.

In the quarter, AWS’s 37% revenue increase indicates that customer demand and consumption levels are still rising fast enough to offset the costs of building and operating at larger scale. AWS revenue growth is often closely watched not only because it drives earnings, but because it can forecast future capacity needs and the pace of longer-term cloud migrations.

The company’s retail and advertising businesses remain important contributors to Amazon’s overall footprint, but the numbers highlighted in the earnings write-up show how AWS dominates current operating income. That dynamic matters because it makes Amazon’s near-term earnings sensitivity higher to cloud demand, pricing trends, and the pace of AI infrastructure deployment.

Still, the earnings coverage leaves some questions unanswered in the information provided. It does not break out which AWS offerings or customer categories drove the 37% growth, and it does not specify how much of the capital spending relates specifically to AI infrastructure versus broader cloud expansion. It also does not detail whether free cash flow weakness came primarily from capex timing, working-capital movements, or both.

What to watch next is whether AWS growth can stay near the current pace while Amazon gradually improves the cash-flow profile. Investors will likely look for further detail on how management links AI-related spending to customer utilization, as well as whether the company indicates any shift in capex intensity after the current build-out cycle.