01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Total net sales increased by 17% year-over-year to $181.5 billion in Q1 2026.
- AWS segment sales grew by an impressive 28%, reaching $37.6 billion.
- Operating income increased by 29.9% year-over-year to $23.9 billion.
- Net income more than doubled, increasing to $30.3 billion from $17.1 billion in the prior year period.
- The company made a significant $15 billion investment in OpenAI, signaling a strategic focus on artificial intelligence.
- Cash provided by operating activities increased by 53% to $26.0 billion for the quarter.
- Amazon.com, Inc. announced a definitive merger agreement to acquire Globalstar, Inc. for approximately $10.9 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Amazon.com Inc kept $0.17.
- Revenue$181.52B100.0%
- Cost of revenue−$87.46B48.2%
- Gross profit$94.06B51.8%
- Operating costs−$70.20B38.7%
- Operating income$23.85B13.1%
- Interest, other & tax$6.40B3.5%
- Net income$30.25B16.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $181.52B$155.67B | +16.6% |
| Cost of Revenue | $87.46B$76.98B | +13.6% |
| Gross Profit | $94.06B$78.69B | +19.5% |
| Operating Expenses | $157.67B$137.26B | +14.9% |
| Operating Income | $23.85B$18.41B | +29.6% |
| Net Income | $30.25B$17.13B | +76.7% |
| EPS (Basic) | $2.82$1.62 | +74.1% |
| EPS (Diluted) | $2.78$1.59 | +74.8% |
| Shares Outstanding (Basic) | 10.74B10.60B | +1.3% |
| Shares Outstanding (Diluted) | 10.87B10.79B | +0.8% |
05—Questions
Frequently Asked Questions
What was Amazon's net sales performance in the first quarter of 2026?
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%.
How did the company's profitability fare in Q1 2026?
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.
What are Amazon's key strategic investments or developments reported in this filing?
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.
How is Amazon's cash flow generation looking?
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.
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