Amazon.com Inc (NASDAQ:AMZN) posted a solid Q2, beating both revenue and earnings expectations. Growth was broad-based, with double-digit gains across segments and geographies—underscoring continued strength in consumer and cloud demand. Q3 revenue guidance came in above consensus, though the midpoint of operating income guidance fell slightly short. This was somewhat puzzling given management highlighted several efficiency drivers, including localization, AI-powered optimization, and expanded robotics usage.
Analysts on the call questioned the 17% year-over-year growth in AWS revenue, which came in below peers. But with AWS operating off a much larger base, the comparison isn’t one-to-one. More pressing was the decline in AWS operating margin to 33%, which raised concerns. Still, demand remains strong, with the backlog growing to $195 billion.
Management also acknowledged ongoing macroeconomic uncertainty but noted no meaningful changes in average selling prices (ASPs) or overall demand trends.
For more details, key highlights, and commentary, check out the high-level earnings summary.
