For the quarter ended June 30, 2026, Amazon’s net sales increased 20 per cent year on year (YoY) to $200.6 billion, while North America sales rose 16 per cent to $116.2 billion and international sales increased 15 per cent to $42.2 billion. Total operating income climbed 43 per cent YoY to $27.5 billion, with North America operating income rising to $9.1 billion from $7.5 billion and international operating income increasing to $1.7 billion from $1.5 billion.
Amazon has reported strong retail-led Q2 FY26 results, with net sales rising 20 per cent to $200.6 billion, supported by higher North America and international sales, faster Prime deliveries, and growth in grocery, everyday essentials and advertising.
The company expanded Amazon Now, shopping tools and supply chain services, while forecasting third-quarter sales of $197-202 billion.
The company also expanded its retail logistics, shopping tools and supply chain offerings during the quarter.
Net income surged to $62.6 billion, or $5.75 per diluted share, compared with $18.2 billion, or $1.68 per diluted share, a year earlier. Amazon noted that second-quarter net income included $53.4 billion in non-operating pre-tax other income, primarily from its investment in Anthropic.
“In Stores, we again set record delivery speeds for Prime members in the first half of the year—over 40 per cent more items delivered same-day or overnight, with Grocery and Everyday Essentials growing meaningfully faster than the rest of the business. And, Advertising had another strong quarter with 26 per cent year-over-year growth,” said Andy Jassy, president and chief executive officer of Amazon.
Retail expansion and fulfilment
Amazon continued expanding Amazon Now, its ultra-fast delivery service offering deliveries within 30 minutes or less. During the quarter, the service entered 80 additional cities and towns in the US and several major cities in Egypt. Amazon Now is now available in nine countries and more than 250 cities and towns globally, with gross sales and units sold increasing by over 80 per cent quarter on quarter.
The company also added millions of new products to its marketplace, including more than 700,000 items from brands such as Ted Baker, Rabanne, Bobbi Brown and CR7 Underwear, Amazon said in a press release.
It integrated Rufus and Alexa+ into Alexa for Shopping, enabling personalised recommendations, product comparisons, price history tracking and automated purchasing through Price Alerts and Auto-Buy. The company said active users nearly doubled during the quarter, while customer interactions increased more than fivefold year on year.
Supply chain and retail technology
Amazon launched Amazon Supply Chain Services, allowing businesses to use its logistics network to move, store and deliver products from raw materials to finished goods. Early customers include Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters.
The company also expanded Amazon Business, which reached an annualised gross sales run rate of $60 billion while increasing its product selection by nearly 30 per cent compared with last year.
Within its fulfilment network, Amazon introduced the next generation of Proteus, an autonomous robot capable of moving loads of up to 1,300 pounds, helping reduce heavy lifting and improve warehouse safety.
Third-quarter outlook
For the third quarter (Q3) of FY26, Amazon expects net sales of $197-202 billion, representing 9-12 per cent year-on-year growth. Excluding the timing impact of Prime Day in both years, underlying sales growth would be nearly 400 basis points higher. Operating income is projected to range between $22.5 billion and $26.5 billion, compared with $17.4 billion in the third quarter of 2025.
Fibre2Fashion News Desk (SG)
