Amazon Q2 Earnings Surpass Expectations but AWS Disappoints
Amazon reported stronger-than-anticipated Q2 earnings, with revenue reaching $167.7 billion against expectations of $162.1 billion. EPS stood at $1.68, well above the $1.33 forecast. Yet, shares dipped over 2% as AWS growth failed to match the momentum seen at rivals Microsoft and Google.
Microsoft's Azure hit $75 billion in fiscal 2025, propelling its market cap past $4 trillion. Alphabet also posted robust cloud revenue growth at 32%, with backlog surging 38%. The contrast in cloud performance overshadowed Amazon's overall earnings beat.
Q3 revenue guidance of $174B-$179.5B exceeded estimates, but operating income projections of $15.5B-$20.5B fell short of Wall Street's $19.5B target. The divergence highlights intensifying competition in cloud services.
