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"Amazon Q1 Earnings: Revenue Rises to $181.5 Billion, Net Income Jumps 77%"

"Amazon Q1 Earnings: Revenue Rises to $181.5 Billion, Net Income Jumps 77%"

News2026-05-06

**Amazon Releases Q1 2026 Financial Results**

For the first quarter ended March 31, 2026, Amazon reported net sales of $181.5 billion, up 17% year over year; operating income of $23.9 billion, up 30%; and net income of $30.3 billion, up 77%. Cash flow from operations over the trailing twelve months increased 30% to $148.5 billion.

Breaking down the $181.5 billion in net sales: North America segment sales grew 12% to $104.1 billion; international segment sales rose 19% to $39.8 billion; and AWS sales increased 28% to $37.6 billion. Of the $23.9 billion in operating income, North America contributed $8.3 billion (+43%), international $1.4 billion (+40%), and AWS $14.2 billion (+23%). The $30.3 billion net income includes a $16.1 billion pretax gain from other income related to the company’s investment in Anthropic.

On the earnings call, Amazon CEO Andy Jassy summarized: “Every day we make customers’ lives easier and better, and their feedback is driving significant growth. AWS grew 28% off a massive base – its fastest growth in 15 quarters. Our chip business revenue run rate exceeded $20 billion, growing triple digits year over year. Advertising revenue topped $70 billion over the past twelve months. Retail unit growth reached 15%, the highest since pre-pandemic restrictions were lifted. We also reached an exciting delivery milestone – over 1 billion items delivered same-day or next-day since the start of 2026.”

On the rapid development of the AI chip business, Jassy noted that in Q1, Amazon’s chip business achieved nearly 40% sequential growth, with an annual revenue run rate now exceeding $20 billion and triple-digit year-over-year growth. “If our chip business were a standalone company, selling the chips we produced this year to both AWS and other third-party customers, our annual run rate would approach $50 billion. To our knowledge, our custom chip business is already one of the top three data center chip businesses globally.”

Regarding custom AI chips, OpenAI has committed to purchasing approximately 2 GW of Trainium compute power through AWS infrastructure to power its frontier models and advanced workloads, with deployment beginning in 2027. Anthropic has committed to securing up to 5 GW of current and future generations of Amazon Trainium chips to train and run its advanced AI models.

“Amazon has now secured over $225 billion in Trainium revenue commitments. Our Trainium2 chips deliver about 30% better price-performance compared to comparable GPUs, and are essentially sold out. Trainium3, which began shipping early this year, offers another 30-40% improvement in price-performance over Trainium2 and is nearly fully pre-booked. And most of the capacity for Trainium4, expected to be generally available in about 18 months, has already been reserved,” Jassy said.

On the retail side, the company’s growth drivers remain greater selection, faster delivery, and lower prices. During the quarter, Amazon.com continued to expand its product assortment, adding over 600 well-known brands. “Same-day” delivery was further accelerated: in the US, new 1-hour and 3-hour delivery options were announced for over 90,000 products, with 1-hour delivery now available in hundreds of towns and 3-hour delivery covering more than 2,000 towns. Amazon Now ultra-fast delivery service also continues to expand, promising delivery of thousands of products within 30 minutes, now serving tens of millions of customers across nine countries. Additionally, the average selling price on Amazon.com declined year over year.

“Our retail teams are also continuing to innovate with AI,” said Jassy.

For example, Amazon launched Health AI on its app and website in the US – a 24/7 AI-powered personal health agent supported by One Medical clinicians, providing US customers with immediate clinical guidance and, with authorization, performing tasks on their behalf, including scheduling appointments, managing prescriptions, and coordinating care with real One Medical doctors.

“Our agentic AI shopping assistant, Rufus, continues to gain customer adoption. Rufus can research products across our store, track prices, and automatically place orders when a price target is met,” he stated. Data show that Rufus’ monthly active users grew more than 115% year over year, and user engagement increased nearly 400% year over year.

Additionally, Amazon recently launched a new AI experience for sellers in Seller Central, dynamically generating customized, personalized data‑visualized key insights and scenario simulations to help sellers drive business growth. “While still early, initial customer response and feedback are very positive.”

Looking ahead, Amazon expects Q2 2026 net sales of between $194 billion and $199 billion, representing growth of 16% to 19% year over year, and operating income of between $20 billion and $24 billion.

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"Amazon Q1 Earnings: Revenue Rises to $181.5 Billion, Net Income Jumps 77%"