Amazon Q2 Beats Estimates; Two ETFs for Advisors

Amazon reported Q2 2026 earnings on July 30, posting diluted EPS of $5.75 and revenue of $200.6 billion, beating analyst expectations. The company said net sales rose 20% year-over-year.

Amazon Web Services generated $42.2 billion in revenue for the quarter, about $2 billion above expectations, with AWS revenue up 36.7% from a year earlier — the company described that as its fastest pace in 18 quarters. Advertising revenue increased 26% year-over-year. Amazon also reported faster growth in Grocery and Everyday Essentials within its stores segment and said Prime members received over 40% more items same-day or overnight in the first half of the year compared with the prior period.

In its earnings release, Amazon CEO Andy Jassy highlighted cloud growth and AI-related businesses, stating, “AWS is booming, growing 36.7% year-over-year in Q2 — our fastest growth in 18 quarters — and our AI and Chips businesses each eclipsed run rates of more than $25 billion.” He also cited record delivery speeds for Prime members and the quarter’s advertising gains.

The report followed a busy week of Big Tech earnings. Microsoft posted strong results driven by demand for AI-related cloud services. Meta disclosed weaker free cash flow and offered a cautious revenue outlook for upcoming periods.

Advisors seeking ETF exposure to Amazon can consider different constructions. The Amplify Online Retail ETF (IBUY) holds a range of e-commerce companies, including Amazon, Wayfair, Etsy and Peloton, and uses a relatively even weighting across its holdings. The State Street SPDR Portfolio S&P 500 Value ETF (SPYV) tracks a value-oriented index of S&P 500 companies and lists Amazon among its top holdings.

Amazon reported that retail operations, cloud services and advertising all contributed to the quarterly outperformance. The company said it expects to continue product and logistics investments in the second half of the year.