Level 1 — Absolute Beginner
Amazon told people how much money it made. The news was very good.
Amazon's cloud computing part is called AWS. AWS grew very fast, faster than it has in more than four years.
Amazon's total sales were more than 200 billion dollars. This is the first time that has happened in just three months.
Investors were happy. Amazon's stock price went up a lot after the news.
- earnings
- the money a company makes, reported to the public
- cloud computing
- storing and using data and programs over the internet instead of on one computer
- revenue
- the total money a company earns from selling things
- quarter
- a three-month period of the year used for business reports
- investor
- a person who puts money into a company hoping to earn more back
- stock
- a small share of ownership in a company that can be bought and sold
- demand
- how much people want to buy or use something
- infrastructure
- the basic systems, like computers and networks, that a business needs to run
Level 2 — Elementary
Amazon reported second-quarter 2026 earnings showing that its cloud computing division, AWS, grew 37 percent compared to the same period last year, the fastest growth rate the division has posted in 18 quarters, or about four and a half years.
AWS revenue reached 42.2 billion dollars, beating analyst expectations of around 40.5 billion dollars, while AWS operating income climbed to 16.6 billion dollars, up from 10.2 billion dollars a year earlier.
Total net sales for the quarter reached 200.6 billion dollars, up 20 percent from 167.7 billion dollars a year earlier, marking the first time Amazon's quarterly sales have crossed the 200 billion dollar mark.
Analysts said the surge was driven largely by strong demand for AI infrastructure, and Amazon's stock jumped more than 9 percent in after-hours trading following the announcement.
- division
- a separate part of a large company that focuses on a specific business area
- analyst
- a person who studies companies and markets to give financial advice or predictions
- operating income
- the profit a company makes from its core business, before certain other costs
- net sales
- the total money a company earns from sales after subtracting returns and discounts
- surge
- a sudden, large increase
- after-hours trading
- buying and selling stock after the regular stock market has closed
- expectation
- a belief about what will happen, often based on predictions
- mark
- a specific level or point used as a measurement
Level 3 — Intermediate
Amazon's second-quarter 2026 results showed Amazon Web Services expanding 37 percent year over year, its fastest growth rate in 18 quarters, comfortably outpacing the 31 percent growth that analysts had projected for the cloud division.
AWS generated 42.2 billion dollars in revenue against expectations of roughly 40.5 billion dollars, while operating income for the division climbed to 16.6 billion dollars, up from 10.2 billion dollars a year earlier, for an operating margin of 39.4 percent.
Total net sales for the quarter reached 200.6 billion dollars, a 20 percent increase from 167.7 billion dollars a year earlier and the first time Amazon's quarterly revenue has surpassed the 200 billion dollar threshold, with both the AI and chips businesses within AWS each eclipsing annual run rates exceeding 25 billion dollars.
Capital expenditures continued to climb as well, with trailing 12-month property and equipment purchases reaching 169 billion dollars, up 64 percent year over year and reflecting sustained investment in AI infrastructure, a factor analysts credited for helping drive Amazon shares more than 9 percent higher in after-hours trading.
- outpace
- to grow or move faster than something else
- operating margin
- the percentage of revenue left as profit after operating costs are subtracted
- threshold
- a level or point that must be reached before something happens or counts
- run rate
- an estimate of a company's future annual revenue based on current results
- capital expenditure
- money a company spends on long-term assets like equipment or buildings
- trailing
- referring to a period of time counted backward from the present
- sustained
- continuing over a long period without stopping
- credited
- given recognition or acknowledgment for causing something
Level 4 — Advanced
Amazon's second-quarter 2026 results depicted Amazon Web Services expanding 37 percent year over year, its fastest growth rate in 18 quarters, comfortably outstripping the 31 percent expansion analysts had projected for the cloud division and reinforcing the extent to which AI workloads are reshaping the company's growth trajectory.
AWS generated 42.2 billion dollars in revenue against consensus expectations of roughly 40.5 billion dollars, while divisional operating income climbed to 16.6 billion dollars, up from 10.2 billion dollars a year earlier, yielding an operating margin of 39.4 percent that underscores the segment's outsized profitability relative to Amazon's retail operations.
Total net sales for the quarter reached 200.6 billion dollars, a 20 percent increase from 167.7 billion dollars a year earlier and the inaugural instance of Amazon's quarterly revenue surpassing the 200 billion dollar threshold, with both the AI and chips businesses embedded within AWS each eclipsing annual run rates exceeding 25 billion dollars.
Capital expenditures continued their upward trajectory as well, with trailing 12-month property and equipment purchases reaching 169 billion dollars, up 64 percent year over year, a sustained outlay in AI infrastructure that analysts credited with propelling Amazon shares more than 9 percent higher in after-hours trading.
- outstrip
- to grow larger or move faster than something else, surpassing it
- trajectory
- the path or direction something follows as it develops over time
- consensus
- a general agreement, especially among analysts or experts
- divisional
- relating to a specific division or branch of an organization
- outsized
- unusually large in size or degree
- inaugural
- marking the first occurrence of something
- embedded
- fixed firmly or deeply within something else
- outlay
- an amount of money spent on something
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