In the second quarter, Amazon exceeded analysts’ predictions, delivering impressive results and providing positive guidance for Q3. The company’s cloud business performed exceptionally well, outpacing expectations. Amazon (NASDAQ:AMZN) soared by more than 8% on Friday in response to the report.
In Q2, Amazon reported an EPS of $0.65 and revenue of $134.4 billion, surpassing estimated figures of $0.35 and $131.45 billion, respectively. Moreover, its North American net sales increased by 11% year-on-year, reaching $82.5 billion.
A notable highlight was Amazon Web Services, the fast-growing cloud revenue segment, which experienced a remarkable 12% growth, amounting to $22.1 billion, well ahead of estimates at 10.2%. This particular segment accounted for a significant 70% of Amazon’s operating profit during Q2.
Looking forward to the third quarter, the company is optimistic, projecting revenue between $138 billion and $143 billion, surpassing Wall Street’s estimated $138.28 billion. Additionally, Amazon guided an operating income range of $5.5 billion to $8.5 billion for Q3.