“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth. As companies continue to modernise their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers’ top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities like SageMaker for model builders, Bedrock for those leveraging frontier models, Trainium for those where the cost of compute for training and inference matters, and Q for those wanting the most capable GenAI assistant for not just coding, but also software development and business integration”, commented Andy Jassy, Amazon President & CEO.

Second Quarter Results

In the second quarter of fiscal 2024, the company’s net sales reached 148.0 billion US dollars, an increase of 10% on a comparable basis to the same period of last year. 2023. Excluding the 1.0 US dollars billion unfavourable impact from year-over-year changes in foreign exchange rates, net sales increased by 11%.

The North America segment contributed 90.0 million US dollars to Amazon’s second quarter net sales, up by 9%, while the International segment contributed 31.7 billion US dollars, up by 7% (or 10% excluding changes in foreign exchange rates), as compared to the same period of 2023. Meanwhile, the AWS segment generated 26.3 billion US dollars, up by 19% from the same quarter of the prior year.  

In the three months to the end of June, the company’s operating income rose to 14.7 billion US dollars from 7.7 billion US dollars in the second quarter of 2023.

Amazon reported a net income of 13.5 billion US dollars, or 1.26 US dollars per diluted share, in the second quarter of the year, which reflects a significant improvement from the net income of 6.7 billion US dollars, or 0.65 US dollars per diluted share, in the same period of last year.

Third Quarter Guidance

For the third quarter, the online giant expects net revenue to be in the range of 154.0 billion to 158.8 billion US dollars, representing growth in the range of 8% to 11% as compared to the same period of 2023. Operating income is expected to be between 11.5 billion and 15.0 billion US dollars, up from 11.2 billion US dollars in the third quarter of last year.