10-QPeriod: Q1 FY2026

AMAZON COM INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 30, 2026For Securities:AMZN

Summary

Amazon.com, Inc. reported a strong first quarter for fiscal year 2026, demonstrating robust top-line growth and significant improvements in profitability. Total net sales surged by 17% year-over-year to $181.5 billion, driven by robust performance across all segments, particularly AWS, which saw a notable 28% increase in sales. Operating income also saw substantial growth, climbing to $23.9 billion from $18.4 billion in the prior year period. This financial strength is underpinned by continued customer engagement and effective operational execution. The company's strategic investments, including a significant $15 billion investment in OpenAI, are positioning it for future growth in emerging technologies like artificial intelligence. Despite increased investments in technology and infrastructure, particularly to support AWS growth, Amazon maintained healthy operating margins. The company's liquidity remains strong, with substantial cash, cash equivalents, and marketable securities, providing flexibility for ongoing investments, strategic acquisitions, and returning capital to shareholders. The outlook for the second quarter of 2026 remains positive, with guidance indicating continued strong sales growth.

Financial Highlights

51 data points
Beta

Revenue

$181.52B

51.8% Gross Margin

Net Income

$30.25B

16.7% Net Margin

EPS (Diluted)

$2.78

Total Assets

$916.63B

Cash & Equivalents

$101.82B

Free Cash Flow

$26.03B

Financial Statements
Beta
Revenue$181.52B
Cost of Revenue$87.46B
Gross Profit$94.06B
Operating Expenses$157.67B
Operating Income$23.85B
Net Income$30.25B
EPS (Basic)$2.82
EPS (Diluted)$2.78
Shares Outstanding (Basic)10.74B
Shares Outstanding (Diluted)10.87B

Key Highlights

  • 1Total net sales increased by 17% year-over-year to $181.5 billion in Q1 2026.
  • 2AWS segment sales grew by an impressive 28%, reaching $37.6 billion.
  • 3Operating income increased by 29.9% year-over-year to $23.9 billion.
  • 4Net income more than doubled, increasing to $30.3 billion from $17.1 billion in the prior year period.
  • 5The company made a significant $15 billion investment in OpenAI, signaling a strategic focus on artificial intelligence.
  • 6Cash provided by operating activities increased by 53% to $26.0 billion for the quarter.
  • 7Amazon.com, Inc. announced a definitive merger agreement to acquire Globalstar, Inc. for approximately $10.9 billion.

Frequently Asked Questions

Amazon.com, Inc. reported total net sales of $181.5 billion for the first quarter ended March 31, 2026, representing a 17% increase compared to $155.7 billion in the same period of 2025. This growth was driven by a 12% increase in North America sales and a 19% increase in International sales, with AWS sales growing by a strong 28%.

Profitability significantly improved, with operating income rising by 29.9% to $23.9 billion in Q1 2026 from $18.4 billion in Q1 2025. Net income more than doubled to $30.3 billion ($2.78 per diluted share) compared to $17.1 billion ($1.59 per diluted share) in the prior year period, reflecting strong revenue growth and effective cost management.

A significant development was the announced definitive merger agreement to acquire Globalstar, Inc. for approximately $10.9 billion, signaling expansion in the satellite communication space. Additionally, the company invested $15.0 billion in OpenAI's Series C Preferred Stock in Q1 2026 and entered into an equity commitment for an additional $35.0 billion, underscoring a strategic focus on artificial intelligence.

Cash flow from operating activities showed considerable strength, increasing to $26.0 billion for the three months ended March 31, 2026, up from $17.0 billion in the prior year. For the twelve months ended March 31, 2026, operating cash flow reached $148.5 billion. However, investing activities used $64.2 billion in Q1 2026, primarily due to significant capital expenditures and investments.