Amazon’s Q1 net income soars 77% to USD 30 billion; AWS leads growth

AWS contributed the bulk of earnings, with operating income climbing to USD 14.2 billion from USD 11.5 billion

by e4m Staff
Published: Apr 30, 2026 9:10 AM | 2 min read

Amazon's Q1 2026 net sales increased 17% year-on-year to USD 181.5 billion, with a 15% growth excluding foreign exchange impacts.
North America sales rose 12% to USD 104.1 billion, while international revenue grew 19% to USD 39.8 billion; AWS sales surged 28% to USD 37.6 billion.
Operating income improved to USD 23.9 billion, net income nearly doubled to USD 30.3 billion, and operating cash flow increased 30% to USD 148.5 billion.
CEO Andy Jassy noted strong customer response, AWS's fastest growth in 15 quarters, and significant investments in AI infrastructure, despite a sharp decline in free cash flow due to increased capital expenditures.

Amazon reported a strong start to 2026, with net sales rising 17% year-on-year to USD 181.5 billion in the first quarter, compared with USD 155.7 billion in the same period last year. Excluding a USD 2.9 billion favourable impact from foreign exchange, revenue grew 15%.

Growth was led by continued momentum across segments. North America sales increased 12% to USD 104.1 billion, while international revenue rose 19% to USD 39.8 billion, or 11% excluding currency impact. Cloud business Amazon Web Services (AWS) remained a key driver, with sales surging 28% year-on-year to USD 37.6 billion.

Profitability also improved significantly. Operating income rose to USD 23.9 billion in Q1 2026 from USD 18.4 billion a year earlier. North America operating income stood at USD 8.3 billion versus USD 5.8 billion last year, while International operating income increased to USD 1.4 billion from USD 1.0 billion. AWS contributed the bulk of earnings, with operating income climbing to USD 14.2 billion from USD 11.5 billion.

Net income nearly doubled to USD 30.3 billion, or USD 2.78 per diluted share, compared with USD 17.1 billion, or USD 1.59 per share, in Q1 2025. The company noted that the quarter included pre-tax gains of USD 16.8 billion from its investment in Anthropic, recorded under non-operating income.

Cash generation remained robust, with operating cash flow increasing 30% to USD 148.5 billion for the trailing twelve months, up from USD 113.9 billion a year ago. However, free cash flow dropped sharply to USD 1.2 billion from USD 25.9 billion, primarily due to a USD 59.3 billion year-on-year increase in capital expenditure, driven by heavy investments in artificial intelligence infrastructure.

Commenting on the results, CEO Andy Jassy said the company is seeing strong customer response across businesses, which is translating into sustained growth. He highlighted AWS’s fastest growth in 15 quarters, a rapidly expanding chips business, and advertising revenue surpassing a USD 70 billion annual run rate.

Jassy also pointed to operational milestones, including over one billion items delivered same-day or overnight in 2026 so far, and growing enterprise adoption of Amazon’s AI offerings. He added that the company remains well positioned to capitalise on major technological shifts, particularly in artificial intelligence.