Amazon Q2 profit jumps 35% to $ 18.2 billion, powered by AI and AWS Growth | Company Business News

Amazon reported a 35 percent jump in quarterly profits on Thursday, as the e-commerce giant said large investments in artificial intelligence began to pay off. The Seattle company has a net profit of $ 18.2 billion for the second quarter that ended on June 30, compared to $ 13.5 billion in the same period last year. Net sales rose 13 percent to $ 167.7 billion, beating the expectations of the analyst and indicated that the global company survived the effects of high-tariff trading policy under US President Donald Trump. “Our belief that AI will change every customer experience starts to play out,” CEO Andy Jassy said, pointing to the company’s extensive Alexa service and new AI malls. AWS leads the revenue boom Amazon Web Services (AWS), the world’s leading wool calculator division in the business, led the costs with sales of 17.5 percent to $ 30.9 billion. Unit operating profit rose to $ 10.2 billion from $ 9.3 billion a year earlier. The strong AWS performance reflects the increasing demand for cloud infrastructure to stimulate AI applications, a trend that benefits large cloud suppliers, as companies are chasing generative AI technology. Despite the excellent results, investors seemed worried about Amazon’s major cash expenses to pursue its AI ambitions, and its share price sent more than three percent lower in the after-hours trading. The company’s free cash flow dropped sharply to $ 18.2 billion for the 12 -month pursuit, from $ 53 billion in the same period last year, as Amazon has gained capital expenditure to AI infrastructure and logistics. The company spent $ 32.2 billion on property and equipment in the quarter, almost double the $ 17.6 billion spent a year earlier, reflecting massive investments in data centers and back room capabilities. Amazon has promised to spend up to $ 100 billion this year, largely on AI-related investments for AWS. For the current quarter, Amazon’s net sales forecast between $ 174.0 billion and $ 179.5 billion, representing a solid 10-13 percent growth, compared to the third quarter of 2024. The operating profit was expected to range from $ 15.5 billion to $ 20.5 billion in the current third quarter, which was also a factor in investment.