Amazon Sees 17% Increase in Net Sales in Q1

Amazon.com, Inc. (NASDAQ: AMZN) today [29th April] announced financial results for its first quarter ended March 31, 2026.

• Net sales increased 17% to $181.5 billion in the first quarter, compared with $155.7 billion in first quarter 2025. Excluding the $2.9 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 15% compared with first quarter 2025.
  
  
  • North America segment sales increased 12% year-over-year to $104.1 billion.
    
    
  • International segment sales increased 19% year-over-year to $39.8 billion, or increased 11% excluding changes in foreign exchange rates.
    
    
  • AWS segment sales increased 28% year-over-year to $37.6 billion.
    
    
• Operating income increased to $23.9 billion in the first quarter, compared with $18.4 billion in first quarter 2025.
  
  
  • North America segment operating income was $8.3 billion, compared with $5.8 billion in first quarter 2025.
    
    
  • International segment operating income was $1.4 billion, compared with $1.0 billion in first quarter 2025.
    
    
  • AWS segment operating income was $14.2 billion, compared with $11.5 billion in first quarter 2025.
    
    
• Net income increased to $30.3 billion in the first quarter, or $2.78 per diluted share, compared with $17.1 billion, or $1.59 per diluted share, in first quarter 2025.
  
  
  • First quarter 2026 net income includes pre-tax gains of $16.8 billion included in non-operating income from our investments in Anthropic.
    
    
• Operating cash flow increased 30% to $148.5 billion for the trailing twelve months, compared with $113.9 billion for the trailing twelve months ended March 31, 2025.
  
  
• Free cash flow decreased to $1.2 billion for the trailing twelve months, driven primarily by a year-over-year increase of $59.3 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow of $25.9 billion for the trailing twelve months ended March 31, 2025.

Some other highlights since the company’s last earnings announcement include that Amazon:

• Continued growing custom silicon business while also continuing to offer the broadest selection of compute options.
  
  
  • Exceeded $20 billion annual revenue run rate for Amazon’s chips business—inclusive of Graviton, Trainium, and Nitro—which is growing triple-digit percentages year-over-year.
    
    
  • Secured a commitment from OpenAI to consume approximately two gigawatts (GW) of Trainium capacity through AWS infrastructure to power its frontier models and advanced workloads, which begins ramping in 2027.
    
    
  • Announced that Anthropic will secure up to five gigawatts (GW) of current and future generations of Amazon’s Trainium chips to train and power their advanced AI models.
    
    
  • Landed 2.1 million+ AI chips over the past 12 months, more than half of which were Trainium, and announced one million+ NVIDIA GPUs to be deployed starting in 2026, giving customers the widest range of accelerated compute options.
    
    
  • Announced a collaboration with Cerebras and plans to deliver through Amazon Bedrock the fastest AI inference speeds available for large language models, becoming the only cloud provider to offer a solution like this.
    
    
  • Partnered with Uber to put Graviton4 chips to work on millions of daily rides and deliveries—matching riders with drivers in fractions of a second at lower cost—and leveraging Trainium3 to train the Al models that make every ride smarter over time.
    
    
  • Signed an agreement with Meta, already an Amazon Bedrock customer at scale, to deploy tens of millions of AWS Graviton cores to power CPU-intensive workloads behind its agentic AI efforts, including real-time reasoning, code generation, and multi-step agent workflows.

“We’re making customers’ lives easier and better every day across all our businesses, and their response is driving significant growth,” said Andy Jassy, President and CEO, Amazon. “AWS is growing 28% (our fastest growth in 15 quarters) on a very large base, our chips business topped a $20 billion revenue run rate (growing triple digits year-over-year), Advertising grew to over $70 billion in TTM revenue, and unit growth in our Stores reached 15% (the highest since the tail end of covid lockdowns). We also hit exciting milestones with delivery speed (more than 1 billion items same-day or overnight in 2026 and counting), Project Hail Mary (nearly $615 million at the box office to date and the second most successful non-sequel, non-franchise opening of recent memory), and Amazon Leo continues to resonate with prospective customers, with Delta Airlines the latest to sign on. We’re in the middle of some of the biggest inflections of our lifetime, we’re well positioned to lead, and I’m very optimistic about what’s ahead for our customers and Amazon.”

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of April 29, 2026, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below.

Second Quarter 2026 Guidance

• Net sales are expected to be between $194.0 billion and $199.0 billion, or to grow between 16% and 19% compared with second quarter 2025. This guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates.
  
  
• Operating income is expected to be between $20.0 billion and $24.0 billion, compared with $19.2 billion in second quarter 2025.
  
  
• This guidance assumes that Prime Day occurs in second quarter 2026.
  
  
• This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.

Source : Amazon

Image : Amazon

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