Amazon jumps as Q1 results show fastest AWS growth in 15 quarters
Amazon shares are rising after a strong Q1 2026 report highlighted reaccelerating AWS growth and sharply higher profitability. The company posted $181.5 billion in net sales, AWS revenue of $37.6 billion (+28%), and net income of $30.3 billion, and it issued Q2 net-sales guidance of $194–$199 billion.
1. What’s moving the stock
Amazon is trading higher as investors react to its latest quarterly results, with Amazon Web Services showing a notable reacceleration in demand and the company delivering a major step-up in profitability. The market is focusing on AWS growth reaching 28% year over year in Q1 2026—described as the fastest pace in 15 quarters—alongside Q2 outlook that came in strong enough to support renewed risk-taking in the shares. (apnews.com)
2. The key numbers behind the move
For the quarter ended March 31, 2026, Amazon reported net sales of $181.5 billion and net income of $30.3 billion ($2.78 per diluted share). AWS segment sales increased 28% year over year to $37.6 billion, a focal point for investors watching whether cloud demand and AI-related workloads are translating into faster growth. (s2.q4cdn.com)
3. Guidance and the debate investors are pricing in
Amazon guided second-quarter 2026 net sales to $194–$199 billion, which helped shift attention from near-term spending concerns toward the trajectory of demand. Even with enthusiasm around cloud momentum, investors are still weighing how aggressive AI and infrastructure investment plans affect free cash flow and the durability of margins, making management’s commentary on returns and capacity build-out the next catalyst after today’s initial pop. (apnews.com)