Amazon net sales increased 20% year over year in its fiscal Q2 2026, and CEO Andrew Jassy credited Amazon Web Services (AWS) with “booming right now.”

AWS reached its fastest growth in 18 quarters, when its revenue was half its current size, Jassy noted on Amazon’s Q2 earnings call with investors. It grew at a rate of 36.7% year over year. Furthermore, AWS revenue increased $4.6 billion compared to Amazon’s Q1 2026, which was 80% more than its largest increase ever prior to that, according to Jassy.

He also said Amazon’s AI revenue run rate “climbed significantly quarter-over-quarter and is now also over $25 billion, growing triple-digit percentages year over year.”

More than 350 million customers have used Alexa for Shopping, the agentic AI assistant, in the last 12 months, according to Jassy. The tool’s number of active users has nearly doubled, he said, with interactions increasing 5x year over year.

Still, Jassy said Amazon is “seeing strong growth across both AI and non-AI.”

Across its web stores, Jassy said, the company has expanded its “ultra-low price selection” on Amazon Haul in the U.S. by nearly 20x since launching in 2024.

Amazon ranks No. 1 in Digital Commerce 360’s Top 1000 Database. The market research tool tracks North America’s largest online retailers by their annual ecommerce sales. However, Amazon is No. 158 in Digital Commerce 360’s all-new AI Rankings. That set of rankings is available in the Top 1000 Pro with AI Database.

Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database. That database ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).

Amazon sales in Q2 2026

In its fiscal Q2 2026, which ended June 30, Amazon net sales reached $200.6 billion. That marked 20% year-over-year growth.

Of that $200.6 billion, more than half — $116.2 billion — came from Amazon sales in North America during Q2. That marked 16% year-over-year growth for the segment.

Amazon international and AWS sales each totaled $42.2 billion in Q2. However, Amazon’s international revenue during Q2 increased at a rate of 15% year over year versus AWS’ 36.7%. Also in Q2, AWS reached an annual run rate of $169 billion, Jassy said.

Amazon Ads generated $19.8 billion in revenue, growing 26% year over year, Jassy said.

“Sponsored Products continues to be our largest offering and a key driver of growth,” he said. “Additionally, increasingly more shoppers are discovering products in our agentic and conversational experiences, including Alexa+ and Alexa for Shopping.”

He said shoppers who click a sponsored prompt convert to a sale 48% more often than those who don’t. They also spend 21% more, on average, he added.

This year, the tentpole, summer iteration of Amazon Prime Day fell during the retailer’s Q2. It was also a four-day sales period, as opposed to its typical 48-hour duration. The summer Amazon Prime Day event ran from June 23 to 26.

“We’re pleased with the customer response to Prime Day, where customers shop millions of deals, including more than 80% at our lowest price of the year and hundreds of thousands discounted by 40% or more,” Jassy said.

Consumers across the U.S. spent $26.4 billion in their collective ecommerce sales during the four-day period, Digital Commerce 360 previously reported. That was 9.3% year-over-year growth.

Geopolitical impacts on Amazon revenue during Q2

Chief financial officer Brian Olsavsky said Amazon has lowered its overall cost to serve, “even as we faced heightened transportation costs driven by fuel inflation from the conflict in the Middle East and higher line haul rates from driver capacity limitations. Excluding the impact of higher fuel and line haul rates, shipping costs grew more slowly than worldwide unit growth at a pace that is relatively consistent with last quarter.”

When Amazon’s Q2 ended, the price of a barrel of crude oil was around $70. By the time Amazon reported earnings, that price climbed to about $84. In April, though, the price reached about $113. For comparison, it was about $66 when the United States and Israel began their war with Iran at the end of February, according to historical data from Trading Economics.

Olsavsky said Fulfillment by Amazon (FBA) fuel and logistics surcharges that the company implemented in April have helped to offset the impact of higher costs on operating income. For its fiscal Q2, Amazon reported $27.5 billion in global operating income, Olsavsky said.

That included benefits from two factors that reduced expenses by about $1.2 billion during the quarter, he said.

1. Amazon received about $600 million in tariff-related refunds. It included that benefit in its North America segment. Olsavsky said that “represents a significant majority of refunds we expect to receive.”
2. The company recorded a $600 million benefit tied to a “change in fair value measurement of energy contracts subject to derivative accounting,” Olsavsky said. This primarily benefited the AWS segment, he said. “These energy contracts are to secure electricity supply for existing and future operations.”

Amazon uses delivery as growth driver in first half of 2026

Jassy referred to Amazon as the nation’s second-largest grocer. He said the number of active customers buying perishables from Amazon has grown more than 50% since the start of the year. Amazon’s same-day delivery orders with groceries average at least three times more units than non-grocery orders, Jassy said. Additionally, he noted that fresh groceries now make up six of the top 20 best sellers on Amazon.com.

Amazon Pharmacy has more than doubled its number of new customers in the first six months of the year, according to Jassy. It also has grown its same-day prescription deliveries by nearly 5x, he added.

Globally, Amazon delivered more than 40% more items for same-day or overnight delivery in the first six months of 2026 than during the same period last year, Jassy said. It is also expanding its “ultra-fast service,” called Amazon Now, which offers delivery in 30 minutes or less.

Jassy said Amazon added Amazon Now options for 80 cities and towns across the U.S., as well as “several major cities in Egypt” in Q2. Amazon Now is available in nine countries and more than 250 cities and towns globally, he added.

The service’s gross sales and units sold have increased more than 80% quarter over quarter, Jassy said. It also has delivered to 60% more customers in Q2 than in Q1.

The company also launched Amazon Supply Chain Services during the quarter. Jassy noted that early customers include Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Amazon sales.