Amazon reported a strong second quarter, with revenue rising well above Wall Street expectations as its AI cloud business gained momentum. The company said net sales increased 20% to $200.6 billion, topping the S&P Capital IQ estimate of $196.4 billion.
The results suggest Amazon's heavy push into artificial intelligence is starting to show up in its top line. According to the report, much of the improvement came from triple-digit growth in part of its AI cloud operation, highlighting how demand for AI-related services is helping drive the business.
At the same time, Amazon's spending remains intense. While revenue surged, free cash flow turned negative as the company continued to invest aggressively in AI and related infrastructure.
The quarter reflects the broader trade-off facing major tech companies: rapid growth tied to AI, but also rising capital needs to support that expansion. For Amazon, the latest numbers indicate that cloud and AI demand are providing a meaningful lift, even as the cost of scaling those efforts weighs on cash flow.
