Amazon Web Services
Q2 2026 sales up 37% to $42.2B with a 39.4% operating margin and a $169B annualized run rate; AI capacity is the main constraint.
The numbers
What it is
Amazon's cloud business: compute, storage, databases, networking, and AI services including Amazon Bedrock model hosting and agent tools, sold to enterprises, governments and AI labs. It is the largest profit center, about 18% of FY2025 net sales but about 57% of operating income.
Why it matters to the stock. AWS growth and margin set most of Amazon's operating profit and drive the capex that the market is watching. Management has said it lacks enough capacity to meet 2026 demand.
News
Amazon Bedrock Managed Agents powered by OpenAI enters public preview in three US regions
AWS opened a public preview of Amazon Bedrock Managed Agents, built jointly with OpenAI on a customized version of the OpenAI Agents API.
AWS becomes first cloud approved for NATO RESTRICTED workloads across all NATO members
AWS said on September 22, 2026 that it is the first cloud provider approved for NATO RESTRICTED workloads across all NATO member nations.
AWS and Cognition sign multi-year deal to sell Devin for legacy code modernization
AWS and Cognition signed a multi-year strategic collaboration covering Devin and the Agent Toolkit for AWS, with Devin available through AWS Marketplace.
OpenAI GPT-6 Astra becomes generally available on Amazon Bedrock
AWS said OpenAI's GPT-6 Astra is generally available on Amazon Bedrock as of September 8, 2026, with a context window of up to 1 million input tokens.
AWS and Nvidia plan 2 million more GPUs for 2027-2028, plus 100,000 for US government
AWS and Nvidia said AWS will deploy 2 million additional Blackwell Ultra, Rubin and Rubin Ultra GPUs across its infrastructure in 2027-2028, and 100,000 GPUs for US government AI factories on secure infrastructure.
Amazon stock jumps 15.3% on July 31 after AWS growth accelerates to 37%
Amazon shares rose 15.3% on July 31, the session after second-quarter results.
Amazon raises 2026 capex to about $220B from $200B on memory costs; AWS backlog hits $496B
On the July 30 earnings call, management raised its 2026 capital expenditure outlook to about $220 billion from about $200 billion, citing higher memory costs.
AWS operating income up to $16.6B in Q2 2026, a 39.4% margin
AWS operating income reached $16.6 billion in the second quarter of 2026, up from $10.2 billion a year earlier, on sales of $42.2 billion.
AWS launches Claude apps gateway, a self-hosted control plane for Claude Code and Claude Desktop
AWS published the Claude apps gateway, a self-hosted control plane that lets organizations manage access, cost and policy for Claude Code and Claude Desktop from one point.
Amazon pledges additional $13B for India AI and cloud infrastructure through 2030
Andy Jassy announced an additional $13 billion for AI and cloud infrastructure in India during meetings with Prime Minister Narendra Modi in New Delhi on June 25, 2026.
OpenAI GPT-5.5, GPT-5.4 and Codex go generally available on Amazon Bedrock
AWS made OpenAI's GPT-5.5 and GPT-5.4 models and Codex generally available on Amazon Bedrock on June 1, 2026, one month after the expanded Amazon-OpenAI partnership was announced.
Claude Platform on AWS becomes generally available in 17 regions
AWS made Claude Platform on AWS generally available on May 11, 2026.
Amazon raises Mississippi data center plan to $25B with 2,000 jobs
Amazon announced an additional $12 billion of data center investment in central Mississippi, lifting its planned total in the state to $25 billion.
Jassy tells staff AWS could reach $600B in annual revenue within a decade
At an internal all-hands meeting on Tuesday, March 17, 2026, Andy Jassy said AI could lift AWS to at least $600 billion in annual revenue over the next decade, double his earlier $300 billion estimate.