On April 30th, Amazon announced its financial report for the first quarter of fiscal year 2026 (ending March 31st) yesterday (April 29th). The net sales were $181.5 billion, a year-on-year increase of 17%; the net profit reached $30.3 billion, a sharp increase of 77% year-on-year. Driven by strong performance, the stock price rose more than 4% in after-hours trading.

The key data of this financial report are as follows:

Net sales were $181.5 billion, a year-on-year increase of 17%

Net profit reached $30.3 billion, a sharp increase of 77% (compared to $17.1 billion in the first quarter of 2025).

Earnings per share reached $2.78, significantly exceeding the expected value of $1.64

Among the core business segments, cloud computing business became the biggest highlight this quarter. AWS revenue reached $37.59 billion, a year-on-year increase of 28%, setting the fastest growth rate in more than three years and exceeding the market expectation of $36.64 billion.

Amazon continues to increase investment in the field of artificial intelligence, with a capital expenditure budget of up to $200 billion in 2026. In response to the surging demand for AI computing power, Amazon recently reached cooperation with OpenAI and Anthropic, and is committed to expanding its self-developed chip business. Property and equipment expenditures in the first quarter reached $44.2 billion.

Large-scale investment has put significant pressure on cash flow. In the past 12 months, the company's free cash flow plummeted 95% to $1.2 billion, mainly due to huge investments in AI infrastructure. In addition, the satellite internet project Leo is also an important factor in the rising capital expenditure. The project plans to start commercial services in the third quarter of this year. Currently, about 270 satellites are in orbit, and the final constellation scale will reach 7,700 satellites.

In terms of strategic mergers and acquisitions, Amazon announced that it will acquire Globalstar for about $11.57 billion, which is the company's second largest acquisition in history. CEO Andy Jassy said that this transaction not only obtains scarce global spectrum resources, but also deepens the cooperative relationship with Apple. As part of the transaction, Apple, which holds 20% of Globalstar's shares, will use Amazon's satellite connection service in some products.

Source: IT Home