Amazon announced its first quarter 2026 financial results on Wednesday, revealing that revenue from its cloud business Amazon Web Services (AWS) increased 28% year-on-year to $37.6 billion from January to March.
Amazon’s advertising services revenue rose 24% to $17.2 billion. Subscription revenue increased 15% to $13.4 billion.
North American sales increased 12% to $104.1 billion. Excluding foreign exchange rate changes, international sales were $39.8 billion, an increase of 11% year over year.
Online store sales were $64.3 billion, while physical store sales were $5.8 billion. Third-party seller services reached $41.6 billion.
Wall Street expects earnings per share (EPS) of $1.65 on revenue of $177.2 billion, according to analyst consensus data provided by LSEG. Amazon reported adjusted EPS of $2.78 on revenue of $181.5 billion. This net sales is a 17% increase compared to the first quarter of 2025, when the company brought in revenue of $155.7 billion.
Amazon expects sales for the April-June quarter to be between $194 billion and $199 billion, an increase of 16% to 19% compared to the second quarter of 2025. It should be noted that these forecasts assume Amazon’s Prime Day sale will take place in the second quarter of 2026.
“Through everything we do, we make our customers’ lives easier and better every day, and their responsiveness is driving our tremendous growth,” Amazon President and CEO Andy Jassy said in a letter to shareholders. “AWS is growing on a very strong basis by 28% (best growth in 15 quarters), our chip business surpassed $20 billion in revenue run rate (triple-digit year-over-year growth), advertising grew to over $70 billion in TTM revenue, and store unit sales growth reached 15% (highest since the end of COVID-19 lockdowns). We also achieved exciting milestones in delivery speed. (over 1 billion items shipped same-day or overnight), Project Hail Mary (same-day or overnight shipping; scheduled for release in 2026 and beyond), Project Hail Mary (to date, it has grossed approximately $615 million, making it the second most successful non-sequel, non-franchise opening in recent memory), Amazon. Leo continues to resonate with our prospects, Delta is currently in the midst of the biggest transition of our lives, we are in a position to lead the way, and I am very optimistic about what lies ahead for our customers and Amazon.”
