Key insights
- Amazon's Q1 2026 results beat expectations with a 17% YoY revenue increase to $181.5 billion and a significant rise in net income to $30.3 billion, boosted by gains from its Anthropic investment. While free cash flow decreased due to increased capital expenditures, the strong earnings and revenue growth, particularly in AWS and advertising, signal continued strength in the consumer and enterprise sectors, likely to positively influence US equity markets.
Net sales increased 17% to $181.5 billion in the first quarter, compared with $155.7 billion in first quarter 2025.
Operating income increased to $23.9 billion in the first quarter, compared with $18.4 billion in first quarter 2025.
Net income increased to $30.3 billion in the first quarter, or $2.78 per diluted share, compared with $17.1 billion, or $1.59 per diluted share, in first quarter 2025.
* First quarter 2026 net income includes pre-tax gains of $16.8 billion included in non-operating income from our investments in Anthropic.
Free cash flow decreased to $1.2 billion for the trailing twelve months, driven primarily by a year-over-year increase of $59.3 billion in purchases of property and equipment, net of proceeds from sales and incentives.
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Position: Long AMZN, since 2021. NFA.