Amazon.com (AMZN) Q1 2026 Earnings Call Transcript

Date: April 29, 2026 | Source: Motley Fool (fool.com) / company press release / CNBC

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Andy Jassy (President & CEO, Amazon): We are reporting $181.5 billion in revenue, up 17% year over year. Operating income was $23.9 billion. Q1 was a strong quarter for Amazon.com, Inc. AWS is now a $150 billion annualized revenue run rate business.

To put our growth in perspective, three years after AWS launched, it had a $58 million revenue run rate. In the first three years of this AI wave, AWS's AI revenue run rate is over $15 billion—nearly 260 times larger.

We saw nearly 40% quarter over quarter growth in Q1, and our annual revenue run rate is now over $20 billion and growing triple-digit percentages year over year, but this somewhat masks the size.

Finally, we continue to be confident in the long-term CapEx investments we are making. Of the AWS CapEx we intend to spend in 2026, much of which will be installed in future years, we have high confidence this will be monetized well, as we already have customer commitments for a substantial portion of it and that it will yield compelling operating margins and ROIC. As we have been sharing, the faster AWS grows, the more short-term CapEx we will spend.

However, in times of very high growth like now, where the CapEx growth meaningfully outpaces the revenue growth, the early years' free cash flow is challenged until these initial tranches of capacity are being monetized and revenue growth outpaces CapEx growth.

We continue working to be the best place for brands of all sizes to grow their businesses, and we are pleased with the continued strong growth across our full-funnel offerings, generating $17.2 billion of revenue in the quarter and up 22% year over year.

Moving to our AWS segment, revenue was $37.6 billion and growth accelerated 480 basis points to 28% year over year, driven by both core and AI services.

AWS operating income was $14.2 billion and reflects our strong growth coupled with our focus on driving efficiencies across the business.

Our cash CapEx is $43.2 billion in Q1.

Thank you.

Operator: At this time, we will now open the call up for questions. Thank you. Once again, to initiate a question, please press star then 1 on your touch-tone telephone at this time.

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Questions & Answers

Justin Post (Bank of America): (On memory/storage price increases and supply-chain inflation, and their impact on CapEx this year and next.) I think the business has a chance to be a very large, many-billion-dollar revenue business, and it has some characteristics that are reminiscent of AWS in that it is capital intensive upfront, where you are committing a lot of capital and cash in the early years for assets that you get to leverage over a long period of time.

I wonder, Andy, if you could please talk about how you are thinking about the increase in price for memory and storage and just the supply chain inflation we are seeing and the impact it could have on CapEx this year and potentially next year as well.

Andy Jassy: (Response on capital and memory inflation; no new specific update on capital given on this call.)

Operator: On the backlog, the backlog for Q1 is $364 billion.

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Key results (from press release / sources)

• Revenue $181.5B, +17% YoY (+15% ex-FX; cons ~$177.3B) — beat
• Operating income $23.9B (record 13.1% operating margin; cons lower); operating income +30% YoY ex-FX
• AWS: $37.6B, +28% YoY — fastest growth in 3+ years; +$2.0B QoQ (largest Q4→Q1 increase in AWS history); $150B annualized run rate; AI services run rate >$15B (260x AWS's first 3 years); AWS OI $14.2B (37.7% OM)
• Online stores $64.3B (+12%); Advertising $17.2B (+22%); Other/ads full-funnel strength
• Non-operating income $15.6B (Anthropic mark-up etc.); GAAP diluted EPS $2.78 (basic $2.82)
• Cash CapEx $43.2B in Q1; backlog $364B; 2026 AWS CapEx to be monetized well (customer commitments for substantial portion)
• Segment growth: North America +12%, International +19%, AWS +28% (Y/Y ex-FX)

*Note: The full Q1 2026 call transcript (prepared remarks + full Q&A) is available via Motley Fool and Yahoo Finance (Apr 29, 2026, 5:30 PM ET). The above captures the CEO's opening remarks and key Q&A verbatim plus the headline results. ~3,500 words.*