Amazon stock surged 6.8% in after-hours trading to $251.46 after the company reported a stronger-than-expected second-quarter performance. Total revenue rose 20% from a year earlier to $200.6 billion, outpacing analyst estimates that were roughly $196 billion. Reported earnings per share came in at $5.75, far above the $1.82 consensus; that EPS figure reflected a $53.4 billion non-operating pre-tax gain tied to Amazon’s investment in Anthropic.
The cloud unit, Amazon Web Services, was the standout operational contributor. AWS revenue climbed 37% year-over-year to $42.2 billion, the division’s most rapid pace of growth in 18 quarters and above analyst forecasts of about $40.5 billion. CEO Andy Jassy described AWS as "booming" and highlighted that both the AI business and the custom chips business had each surpassed annual revenue run rates of more than $25 billion, indicating sizable momentum within the cloud franchise.
Adding to the momentum, Amazon’s autonomous vehicle unit Zoox received federal approval from the National Highway Traffic Safety Administration on the same day as the earnings release. The approval permits Zoox to commercially deploy up to 2,500 purpose-built, steering-wheel-free robotaxis annually, and represents the first U.S. clearance allowing a paid autonomous ride service to operate without human vehicle controls. Commercial service is slated to begin in Las Vegas.
Analyst sentiment leading into the report had already been constructive. BMO Capital raised its price target on Amazon to $360 prior to the earnings print, while Bank of America lifted its AWS growth forecast to 33%. Those moves reflected a generally bullish posture on the company ahead of the quarterly results, positions that were ultimately validated by the stronger-than-expected outcomes.
The market backdrop did little to amplify the move. During the regular trading session the S&P 500 rose 0.1%, the Dow Jones gained 0.1%, and the Nasdaq advanced 0.4%. The previous day had seen broad market selling pressure after the Federal Reserve kept interest rates steady, a development that stoked inflation worries. Against that backdrop, Amazon’s roughly 3.9% gain during the regular session and the subsequent after-hours jump appear to have been largely company-specific.
Taken together, the combination of a decisive top-line and cloud revenue beat, the landmark regulatory approval for Zoox, and continued analyst support produced a significant after-hours catalyst that pushed Amazon substantially above its prior close of $235.50 and nearer to its 52-week high of $278.56.
Context note: The post-quarter EPS figure was materially impacted by a sizable non-operating gain associated with Anthropic; the company also reported its strongest AWS growth in 18 quarters and secured federal authorization for limited commercial deployment of its Zoox robotaxis.