economy

April 29, 2026

Amazon stock dips even as earnings beat expectations with strong cloud growth

Revenue in Amazon's cloud computing segment expanded 28% year over year, topping analysts' estimates.

Amazon stock dips even as earnings beat expectations with strong cloud growth

TL;DR

  • Amazon's Q1 earnings per share ($2.78) and revenue ($181.52 billion) exceeded analyst estimates.
  • Amazon Web Services (AWS) revenue grew 28% year-over-year to $37.59 billion, surpassing expectations.
  • Advertising revenue increased by 24% to $17.24 billion, also exceeding forecasts.
  • The company's capital expenditures reached $44.2 billion in Q1, with projections of $200 billion by 2026 for AI investments.
  • Free cash flow for the past twelve months significantly decreased by 95% year-over-year, attributed to AI investments.
  • Amazon expects Q2 sales between $194 billion and $199 billion, higher than analyst predictions.
  • Prime Day is scheduled for June, earlier than its typical timeframe.
  • Amazon's global headcount remained roughly flat year-over-year, despite previous layoff announcements.

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