Amazon reports $62.6bn quarterly profit as advertising revenue rises 26%
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Amazon exceeded Wall Street’s second-quarter expectations, reporting more than $200 billion in revenue and a sharp rise in profit. The results highlight the expanding role of advertising, cloud computing and AI infrastructure in Amazon’s business, with gains from its investment in Anthropic making a major contribution to earnings.
Advertising services revenue rose 26% year on year to $19.8 billion, while total revenue reached $200.6 billion, compared with forecasts of $196.43 billion. Diluted earnings per share were $5.75, above the expected $1.82, and net profit reached $62.6 billion; Amazon said AWS revenue grew 36.7%, its fastest pace in 18 quarters, while its AI and chip businesses exceeded annual revenue run rates of $25 billion.
- Amazon beat forecasts with $200.6 billion in quarterly revenue.
- Advertising revenue climbed 26% to $19.8 billion.
- Anthropic-linked gains helped lift profit to $62.6 billion.
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Amazon is one of the world’s largest technology and retail companies. It is best known for its online marketplace, but it also earns money from subscriptions, advertising and Amazon Web Services, or AWS, which rents computing power and data storage to businesses.
Advertising on Amazon includes sponsored product listings and promotions shown to shoppers. AWS is a major supplier of cloud computing, an industry increasingly shaped by demand for artificial intelligence tools, which require substantial computing capacity.
Anthropic is an artificial intelligence company that develops systems including the Claude chatbot. Amazon has invested in Anthropic, so changes in the value of that investment can affect Amazon’s reported profit as well as its underlying operating businesses.
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Originally published by Variety as “Amazon Q2 Ad Revenue Up 26% as Tech Giant’s Profit Booms to $62.6 Billion on Anthropic Investments”.