The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Walmart is the world’s second-largest retailer, offering both physical retail and e-commerce. Until February 2025, it was America's largest company by revenue. Groceries currently account for a large portion of the company's sales, but the company also sells a wide range of general merchandise, through Walmart U.S., Walmart International, and Sam’s Club warehouse stores. Walmart also offers health care products and pharmacy services. Founded in 1962, the company changed its name from Wal-Mart Stores to Walmart in 2018.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Amazon, which debuted on the Fortune 500 in 2002, snared the top spot on the strength of 12% year-over-year revenue growth. It also posted record profits as its juggernaut AWS cloud-services business expanded its margins.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are automotive retail, general merchandisers, internet retail, and specialty retail.

Fortune Sector Leaders: Retailing

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA 2024-Amazon

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-Amazon

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Amazon

The e-commerce giant fell two spots on this year's Global 500: Revenue growth, at 9% year over year, was the slowest in Amazon’s history as a public company to date. 
<ul> 
 	<li>Amazon swung from a hefty profit in 2021 to a $2.7 billion loss in 2022. Slowing growth in e-commerce and in the Amazon Web Services (AWS) cloud division contributed to the slump. CEO Andy Jassy said in April 2023 that he anticipated a “pending deluge” in spending on A.I. and machine learning that would revive growth at AWS.</li> 
 	<li>The company announced layoffs of about 27,000 employees in 2023, with cuts concentrated in cloud computing and human resources.</li> 
 	<li>The company closed its physical bookstores and other retail shops in March 2022 to focus on other store formats.</li> 
 	<li>In July 2022 Amazon announced that it would pay $3.5 billion to acquire primary care provider One Medical, adding the company to its growing health care services portfolio.</li> 
</ul>

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Amazon

The e-commerce juggernaut has fallen slightly in the Modern Board 25 rankings but still earned a spot for its accomplishments in gender representation and diversity. Its 11-member board includes founder and former CEO Jeff Bezos and CEO Andy Jassy, the longtime <a href="https://fortune.com/company/amazon-com/">Amazon</a> Web Services head who succeeded Bezos. The board also boasts ex-CEOs such as PepsiCo’s Indra Nooyi and MTV’s Judith McGrath; as well as Edith Cooper, a former Goldman Sachs executive and cofounder of professional coaching platform Medley; and former U.S. Deputy Attorney General Jamie Gorelick. Amazon has ramped up cost-cutting measures recently and laid off 9,000 employees <a href="https://www.aboutamazon.com/news/company-news/update-from-ceo-andy-jassy-on-amazons-operating-plan-and-additional-role-eliminations">in April</a>, following an earlier round of 18,000. It’s also dealing with unionization efforts at several of its warehouses. On the sustainability front, the retail behemoth says it’s on a path to powering operations solely with renewable energy by 2025, noting that several of its AWS data center regions are powered by at least 95% renewable energy.

Fortune Modern Board 25

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Amazon

The e-commerce giant occupies the No. 2 spot on our list for the fourth consecutive year, though revenue growth, at 9% year over year, was the slowest in Amazon’s history as a public company to date. 
<ul> 
 	<li>Amazon swung from a hefty profit in 2021 to a $2.7 billion loss in 2022. Slowing growth in e-commerce and in the Amazon Web Services (AWS) cloud division contributed to the slump. CEO Andy Jassy said in April 2023 that he anticipated a “pending deluge” in spending on A.I. and machine learning that would revive growth at AWS.</li> 
 	<li>The company announced layoffs of about 27,000 employees in 2023, with cuts concentrated in cloud computing and human resources. -</li> 
 	<li>Amazon lost half of its market value between April 2022 and the end of the year, though its stock has since partly rebounded. The company was hit by a tech-stock rout that also affected many of its rivals.</li> 
 	<li>The company closed its physical bookstores and other retail shops in March 2022 to focus on other store formats.</li> 
 	<li>In July 2022 Amazon announced that it would pay $3.5 billion to acquire primary care provider One Medical, adding the company to its growing health care services portfolio.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-02-Amazon

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-02-Amazon

2021 was a tumultuous year for the e-commerce giant. Founder Jeff Bezos formally stepped down as president and CEO on July 5, 2021, and Andy Jassy, longtime head of the Amazon Web Services (AWS) cloud juggernaut, took the reins. The company struggled with labor shortages, a massive surge in employee turnover, and the biggest unionization push since its founding. But those obstacles didn’t stop Amazon from growing its headcount by a net of 310,000 employees in 2021. It also increased its minimum hourly wage from $15 to $18 in September of that year. Amazon’s streaming service sowed the seeds for further growth as the company acquired Hollywood studio MGM in an $8.5 billion deal. Amazon Prime Day sales in 2021 reached a record-breaking total of $11.19 billion. And overall, the retail and cloud-computing powerhouse grew revenue by more than 21% and brought in $33.3 billion in profits, a stunning 56.4% increase over 2020.

Modern Board 2022-Amazon

Amazon’s board includes an impressive array of directors, and scores high on gender equality, age dispersion, and board expertise. In addition to founder and former CEO Jeff Bezos and current CEO Andy Jassy, the longtime Amazon Web Services leader who succeeded Bezos in July 2021, the board includes former CEOs Indra Nooyi (Pepsi), Judith McGrath (MTV Networks), and Patricia Stonesifer (Martha’s Table, a nonprofit). Wendell Weeks, current CEO of Corning, is also on the board. 
 
General (Retired) Keith Alexander, who headed the U.S. Cyber Command in the Obama administration and is a former director of the National Security Agency, joined the board in September 2020. Daniel P. Huttenlocher, dean of the MIT Schwarzman College of Computing, has been a director since September 2016. 
 
Amazon’s growth as of late has been even better than expected; as of April 2022, its stock price was up 50% since the start of 2020. In March 2022, it closed the <a href="https://fortune.com/2022/03/17/amazon-closes-deal-to-acquire-mgm-studios/">acquisition of the entertainment studio MGM</a>, a move intended to support its content business. The company has also announced its first stock split since 1999, scheduled to take place in June 2022, which <a href="https://www.fool.com/investing/2022/03/15/alphabet-amazon-stock-splits-what-you-should-know/">some analysts say</a> will set the stock price up for future gains alongside the company’s significant growth.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Amazon

2021 was a tumultuous year for the e-commerce giant. Founder Jeff Bezos formally stepped down as president and CEO on July 5, 2021, and Andy Jassy, longtime head of the Amazon Web Services (AWS) cloud juggernaut, took the reins. The company struggled with labor shortages, a massive surge in employee turnover, and the biggest unionization push since its founding. But those obstacles didn’t stop Amazon from growing its headcount by a net of 310,000 employees in 2021. It also increased its minimum hourly wage from $15 to $18 in September of that year. Amazon’s streaming service sowed the seeds for further growth as the company acquired Hollywood studio MGM in an $8.5 billion deal. Amazon Prime Day sales in 2021 reached a record-breaking total of $11.19 billion. And overall, the retail and cloud-computing powerhouse grew revenue by more than 21% and brought in $33.3 billion in profits, a stunning 56.4% increase over 2020.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-02-Amazon

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-003-Amazon

Walmart had better watch out. A company this big shouldn’t be able to grow this fast—but Amazon’s 38% revenue growth in 2020 has the Seattle company creeping closer to the top of the Fortune 500. For years a money loser, Amazon earned $21.3 billion in profit on more than $386 billion in annual sales. As the pandemic forced everyone online, the Everything Store won big. The e-tailer’s Prime delivery and entertainment service gained 50 million subscribers year over year, for a total of more than 200 million global customers. CEO Jeff Bezos picked a banner year to step down from leading day-to-day operations; he handed the title to Andy Jassy, former boss of the ultra-profitable Amazon Web Services unit, in the second half of 2021.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-02-Amazon

Walmart had better watch out. A company this big shouldn’t be able to grow this fast—but Amazon’s 38% revenue growth in 2020 has the Seattle company creeping closer to the top of the Fortune 500. For years a money loser, Amazon earned $21.3 billion in profit on more than $386 billion in annual sales. As the pandemic forced everyone online, the Everything Store won big. The e-tailer’s Prime delivery and entertainment service gained 50 million subscribers year over year, for a total of more than 200 million global customers. CEO Jeff Bezos picked a banner year to step down from leading day-to-day operations; he’ll be handing the title to Andy Jassy, currently boss of the ultra-profitable Amazon Web Services unit, in the second half of 2021.

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC 2021-Amazon

100 Fastest-Growing Companies

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-009-Amazon

A company this big shouldn’t be able to grow this fast—but Amazon’s 21% revenue growth in 2019, to $281 billion, is the reason the Seattle company has moved up four spots on the Global 500. For years a money loser, Amazon earned $11.6 billion in profit on more than $280 billion in annual sales. Key drivers for the so-called Everything Store’s growth? Its consumer bundle keeps expanding. And its Prime delivery and entertainment subscription service counts more than 150 million global customers. As in prior years, the company’s Amazon Web Services unit outpaced the company as a whole, growing revenue at a 37% clip to $35 billion. More recently, the novel coronavirus pandemic accelerated many of the company's big bets: In the company's fiscal second quarter alone (ended June 30, 2020), sales leapt up 40%, year over year, to $88.9 billion. Profits for the quarter, meanwhile, doubled, to $5.2 billion.

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future 50-2020-Amazon

E-commerce and cloud-storage giant Amazon has been one of the biggest beneficiaries of changing consumer behavior during the COVID-19 pandemic. Its sales jumped 35% to more than $260 billion in the first nine months of 2020, as people stopped going to stores and spent more online. The company’s market-leading cloud-computing division, Amazon Web Services, has also benefited in 2020 as the hosting platform for everything from Netflix to Zoom.

The Future 50

This year's Fortune 500 marks the 66th running of the list.

F500-2020-002-Amazon

A company this big shouldn’t be able to grow this fast—but Amazon’s 21% revenue growth in 2019, to $281 billion, is the reason the Seattle company has catapulted to No. 2 on the Fortune 500. It's now ranked behind only its greatest rival and the world’s biggest retailer: Walmart. For years a money loser, Amazon earned $11.6 billion in profit on more than $280 billion in annual sales. Key drivers for the so-called Everything Store’s growth is that its consumer bundle keeps expanding. Its Prime delivery and entertainment subscription service counts more than 150 million global customers. As in prior years, the company’s Amazon Web Services unit outpaced the company as a whole, growing revenue at a 37% clip to $35 billion.

Collectively, the ranked companies produced a three-year average shareholder return of 19%, vs. 11% for the S&P 500.

Fastest Growing Companies 2020-10-Amazon

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

This year's Fortune 500 marks the 65th running of the list.

Everybody loves an up-and-comer: 2019's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Everybody loves an up-and-comer: 2018's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Everybody loves an up-and-comer: 2017's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fastest-growing Companies

Revenue 3 Yr Growth Rank

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EPS 3 Yr Growth Rank

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Beat S&P 500 3 Yr Return

Current Streak

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Sector

Future 50

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Industry

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Industry Rank

Previous Industry Rank

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

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Quality of Products/Services

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Strongest Dimension

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Amazon.com was incorporated in 1994; in 2026, it became the world's biggest company by revenue. It is the largest e-commerce retailer in the U.S. and a player in the grocery business, owing in part to its ownership of the Whole Foods supermarket chain. The company offers cloud services through its Amazon Web Services segment. Amazon develops and produces media content, much of which it streams through its Amazon Prime membership program; in 2021, it acquired the studio Metro-Goldwyn-Mayer (MGM). Amazon also makes and sells electronic devices including the Kindle e-book reader and Echo “smart speaker.”

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Amazon (AMZN): Company Profile, Stock Price, News, Rankings

legacy

Amazon

amazon

Thank you for standing by. Good day, everyone, welcome to the Amazon.com First Quarter 2026 financial results teleconference. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question and answer session. Today's call is being recorded. For opening remarks, I will be turning the call over to the Vice President of Investor Relations, Mr. Dave Fildes. Thank you, sir. Please go ahead.

Hello, Welcome to our Q1 2026 financial results conference call. Joining us today to answer your questions is Andy Jassy, our Chief Executive Officer, and Brian Olsavsky, our Chief Financial Officer. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2025. Our comments and responses to your questions reflect management's views as of today, April 29th, 2026 only, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings.

During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions.

Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. Now I'll turn the call over to Andy.

Thanks, Dave. We're reporting $181.5 billion in revenue, up 17% year-over-year. Excluding the $2.9 billion favorable impact from foreign exchange, net sales increased 15%. Operating income was $23.9 billion. Q1 was a strong quarter for Amazon. Starting with AWS, growth continued to accelerate, up 28% year-over-year, the fastest growth rate in 15 quarters, up $2 billion quarter-over-quarter, the largest Q4 to Q1 AWS revenue increase ever. AWS is now a $150 billion annualized revenue run rate business. It's very unusual for a business to grow this fast on a base this large. The last time we saw growth at this clip, AWS was roughly half the size. We've never seen a technology grow as rapidly as AI.

Amazon is already a leader. Companies continue to choose AWS for AI. To put our growth in perspective, three years after AWS launched, it had a $58 million revenue run rate. In the first three years of this AI wave, AWS's AI revenue run rate is over $15 billion, nearly 260x larger. There are several reasons customers are choosing AWS for AI. First, we've built broader capabilities than others. That includes model building with SageMaker, which reduces training time by up to 40%, high-performance inference with the leading selection of frontier models in Bedrock, which saw 170% growth in customer spend quarter-over-quarter. It processed more tokens in Q1 than all prior years combined. We're excited to make OpenAI's models available in Bedrock. Yesterday, we added OpenAI's GPT 5.4 model, with 5.5 coming soon.

Yesterday, we also started the preview of Amazon Bedrock Managed Agents, powered by OpenAI, the stateful runtime environment that enables any organization to build generative AI applications and agents at production scale. We believe that modern agentic applications will be stateful, and this new technology will rapidly accelerate agentic AI adoption. OpenAI has said they're already seeing unprecedented demand for this new product, and we're seeing heavy customer interest as well. Most of the value companies derive from AI will be through agents, and AWS customers can build agents with their proprietary data in Strands, which has been downloaded more than 25 million times and saw 3x more downloads quarter-over-quarter. Customers can deploy agents with enterprise scale, security, and reliability with AgentCore, which is being used to deploy an agent as frequently as every 10 seconds.

We also offer turnkey agents for coding, software migrations, business operations, and knowledge workers in Amazon Q, AWS Transform, Amazon Connect, and Amazon Quick. They continue to resonate with customers. The number of developers using Amazon Q more than doubled quarter-over-quarter, and enterprise customer usage increased nearly 10x. Customers have used AWS Transform to save over 1.56 million hours of manual effort when migrating and modernizing their workloads. The number of new customers using Amazon Quick has grown more than 4x quarter-over-quarter, and we just announced V1 of our Amazon Quick desktop app yesterday.

It's very compelling, as it can query your email, calendar, Slack, local files, and several other applications you use every day to flag important communications, retrieve and summarize information, make recommendations, compose and send communications to others to create agents that highlight or automatically do work that you used to have to do yourself.

You can easily keep refining your preferences. Quake's advanced knowledge graph enables its AI agents to automatically learn from your interactions to become more personalized over time. One of our enterprise customers just told us, "Quake isn't just improving how we work, it's letting us reimagine it." Second, another reason customers continue choosing AWS, is that as they expand their use of AI, they want their inference to reside near their other applications and data, and much more of it resides in AWS than any place else. Third, as customers expand their AI usage, they also want to consume additional non-AI services. They're choosing AWS because we've built the broadest and most capable core offerings by a wide margin. We offer thousands of features across compute, storage, databases, analytics, security, and more. Gartner consistently recognizes AWS's leadership across their major cloud evaluation areas. 

Fourth, AWS has the strongest security and operational performance of any AI and infrastructure provider, and startups, enterprises, and governments continue to choose AWS as the foundation for their most critical workloads. These are some of the reasons even more customers are choosing AWS. Just since last quarter's call, we've announced new agreements with OpenAI, Anthropic, Meta, NVIDIA, Uber, U.S. Bank, Fox, Southwest Airlines, U.S. Army, Bloomberg, Cerebras, AT&T, Nokia, Fundamental, the National Geographic Society, PGA Tour, and many more. Our chips business continues to grow rapidly and is larger than what a lot of folks thought. We saw nearly 40% quarter-over-quarter growth in Q1, and our annual revenue run rate is now over $20 billion and growing triple-digit percentages year-over-year. This somewhat masks the size.

If our chips business was a standalone business and sold chips produced this year to AWS and other third parties, as other leading chip companies do, our annual revenue run rate would be $50 billion. As best as we can tell, our custom silicon business is now one of the top three data center chip businesses in the world, the speed at which we've gotten here is extraordinary. We have momentum. For our custom AI silicon, we've recently shared very large multi-year, multi-gigawatt training commitments from the two leading AI labs in the world, Anthropic and OpenAI, as well as an increasing number of companies like Uber betting on Trainium. We now have over $225 billion in revenue commitments for Trainium. Our Trainium2 chip has about 30% better price performance than comparable GPUs and is largely sold out.

Trainium3, which just started shipping at the start of 2026 and is 30%-40% more price performant than Trainium2, is nearly fully subscribed. Much of Trainium4, which is still about 18 months from broad availability, has already been reserved. Amazon Bedrock, which is used expansively by over 125,000 customers, runs most of its inference on Trainium, and almost 80% of the Fortune 100 companies are using Bedrock. We also just announced that Meta is committed to using tens of millions of Graviton cores. Graviton is our industry-leading CPU chip, which allows Meta to run the CPU-intensive workloads behind agentic AI with the performance and efficiency they need at their scale.

AI is commonly seen as a GPU story, but the rise of agentic workloads, real-time reasoning, code generation, reinforcement learning, and multi-step task orchestration is driving massive CPU demand as well. As AI systems shift from answering questions to taking actions, and as post-training and inference scale up, the compute required pulls heavily on CPUs. That's why Meta chose Graviton, which delivers up to 40% better price performance than any other 86 processors, and now used by 98% of the top 1,000 EC2 customers. Nobody has a better set of chips across AI and CPU workloads than AWS with Trainium and Graviton, and we're unusually well-positioned for this AI inflection we're in the early stages of experiencing. While the largest number of AI chips we're bringing in are Trainium, we continue to have a deep partnership with NVIDIA.

We have immense respect for them, continue to order substantial quantities, we'll be partners for as long as I can foresee, and we will always have customers who want to run NVIDIA on AWS. We will also have a very large chips business ourselves. Customers always want choice. It's always been true and always will be true. Different companies will offer different benefits for customers, and the uniquely strong price performance that Trainium offers is compelling to our external and internal customers. For perspective, it's scale. We expect Trainium will save us tens of billions of dollars of CapEx each year and provide several hundred basis points of operating margin advantage versus relying on others' chips for inference. Finally, we continue to be confident in the long-term CapEx investments we're making.

Of the AWS CapEx we intend to spend in 2026, much of which will be installed in future years, we have high confidence this will be monetized well, as we already have customer commitments for a substantial portion of it, and that it will yield compelling operating margins and ROIC. As we've been sharing, the faster AWS grows, the more short-term CapEx we'll spend. AWS has to lay out cash for land, power, buildings, chips, servers, and networking gear in advance of when we can monetize it, typically six to 24 months before we start billing customers, depending on the component. However, these CapEx investments fund assets with many year useful lives, 30+ years for data centers, five to six years for chips, servers, and networking gear. The free cash flow and ROIC for these investments are cumulatively quite attractive a couple years after being in service.

However, in times of very high growth like now, where the CapEx growth meaningfully outpaces the revenue growth, the early years free cash flow is challenged until these initial tranches of capacity are being monetized and revenue growth outpaces CapEx growth. We've been through this cycle with the first big AWS growth wave and like the results. We expect to feel similarly about this next wave with much larger potential downstream revenue and free cash flow. I'll now turn to stores. Units grew 15% year-over-year, the highest we've seen since the tail end of COVID lockdowns. We continued expanding selection, including more than 600 new notable brands. Our grocery business continues to grow quickly across both perishables and non-perishables. With more than $150 billion in gross sales in 2025, we're now the second-largest grocer in the U.S.

We offer perishables delivered same-day alongside millions of other items in more than 2,300 cities and towns across the U.S., with more to come. Prime members are loving the convenience of getting fresh groceries alongside other products they're buying on Amazon. Perishable sales have grown over 40x year-over-year and make up nine of the top 10 most ordered items for same-day delivery where the service is available. Customer shopping same-day perishables build larger baskets, adding nearly three times as many items to their order, and spend over 80% more than customers who don't. Whole Foods Market also continues to accelerate, with over 550 stores today and 100 more coming in the next few years. We remain committed to meeting or beating other retailers on price.

In Q1, the average prices of products offered on amazon.com decreased compared to the same period last year. Prime Day will take place in most countries in June, which will bring Prime members even more savings across every category. We continue to find new ways to speed up delivery for customers in both cities and rural areas. We offer millions of items available for same-day delivery with Prime, up to 40 times the selection of a typical big box retail store, and we've delivered more than 1 billion items same day overnight so far this year. We're also making delivery even faster, recently announcing one- and three-hour delivery options on over 90,000 items, with one-hour delivery available in hundreds of cities and towns, three-hour delivery in 2,000+ cities and towns, and more on the way.

We continue to expand our ultra-fast delivery service, Amazon Now, which offers delivery in 30 minutes or less on thousands of items. It started last year in India, where orders are increasing 25% month-over-month, with Prime members tripling their shopping frequency once they start using it. The service is now available to tens of millions of customers across nine countries, with more to come as well. The stores team also continues to innovate and deliver for customers with AI. We launched Health AI, a 24/7 AI-powered personal health agent backed by One Medical clinicians that gives U.S. customers instant clinical guidance and takes action with their permission, from booking appointments to managing prescriptions to facilitating medical treatment with a real One Medical provider. Rufus, our agentic AI shopping assistant, continues to resonate with customers.

Rufus can research products, track prices, and auto-buy products in our store when they reach a set price. Monthly active users are up over 115%. Engagement is up nearly 400% year-over-year. We recently introduced a new AI experience for sellers in Seller Central that dynamically generates a custom personalized visualization of data, key insights, and scenarios tailored to the seller's goals. It's early, but the initial response and feedback are very strong. Moving on to Amazon Ads. We continue working to be the best place for brands of all sizes to grow their businesses. We're pleased with the continued strong growth across our full funnel offerings, generating $17.2 billion of revenue in the quarter and up 22% year-over-year.

Forrester recently recognized Amazon Ads as a leader in omni-channel advertising platforms with unmatched supply and insights for connected TV and commerce media. We deepened our Netflix partnership with Amazon Audiences, which enables advertisers to apply Amazon's exclusive signals from shopping, browsing, and streaming to Netflix's highly engaged viewers to reach the right audiences and drive even stronger performance. We also partnered with Comcast Advertising to expand local advertising to thousands of brands and expanded interactive video ad capabilities to partners starting with Samsung TVs. Our ads team also continues to invent and deliver for advertisers with AI. For example, we expanded Creative Agent, an agentic partner that plans and executes the entire ad creative process, to Canada, France, Germany, India, Italy, Spain, and the U.K. We recently introduced sponsored product and brand prompts in Rufus that help brands showcase products and customers make more informed buying decisions.

It's early, but we're seeing nearly 20% of shoppers who interact with a brand prompt in Rufus continue the conversation about that brand. We're also continuing to invent and see momentum in several other areas, and I'll mention a few. Starting with entertainment, moviegoers have flocked to Project Hail Mary with nearly $615 million in global box office to date. Its opening weekend was the second biggest for any non-sequel, non-franchise film in the last decade. We also surpassed 100 million viewers globally for the Culpables movie trilogy, with all three films reaching number one in more than 170 countries at launch. In live sports, we offered exclusive coverage of the NBA SoFi Play-In Tournament, with total viewership up 18% compared to last year on cable. Alexa+ early access expanded to millions more Prime members in Mexico, the U.K., Italy, and Spain.

Customers are loving Alexa+, talking to Alexa twice as much and for longer durations across a wider breadth of topics, completing purchases on devices three times more, streaming music 25% more, and using smart home functionality 50% more than Alexa. Zoox has now driven nearly 2 million mi and carried more than 350,000 riders. It's available to the public in Las Vegas and San Francisco. It's testing in eight other cities. We recently announced that Zoox will be available through the Uber app in Las Vegas and in Los Angeles in the future. Finally, Amazon Leo continues gaining momentum. With commercial service on track to launch in a few months, we already have meaningful revenue commitments from enterprise and governments, including Delta Air Lines, JetBlue, AT&T, Vodafone, DirecTV Latin America, Australia's National Broadband Network, DP World Tour, NASA, and others.

We also announced that we plan to acquire Globalstar, which will expand Leo's satellite network with direct-to-device capabilities, and we entered an agreement with Apple for Amazon Leo to power satellite services for iPhones and Apple Watches. We're in the middle of some of the biggest inflections of our lifetime, and Amazon has the culture, the know-how, and the resources to make so many customers' lives better and easier, and to build multiple new long-term businesses with substantial return on invested capital and free cash flow. We will continue investing and inventing to make it so. With that, I'll turn it over to Brian.

Thanks, Andy. Let's start with our top-line financial results. Worldwide revenue is $181.5 billion, a 15% increase year-over-year, excluding the 180 basis points favorable impact of foreign exchange. Worldwide operating income was $23.9 billion with an operating margin of 13.1%, our highest operating margin ever. Across all segments, we continue to innovate for customers while operating more efficiently. In the North America segment, first quarter revenue was $104.1 billion, an increase of 12% year-over-year. International segment revenue was $39.8 billion, an increase of 11% year-over-year, excluding the impact of foreign exchange. Our seasonal shopping events performed well in Q1, including our big spring sale.

We also saw particularly strong performance with third-party sellers, who are important contributors to our broad selection and competitive pricing. Our sellers saw strong sales growth in Q1, particularly in the U.S, as well as in Europe and Brazil, where we've recently lowered seller fees. We're seeing our investments in the seller experience resonate and, in turn, grow our business. Prime continues to fuel our growth and reflects the value members receive from the program. Prime Video is a key pillar of the Prime value proposition, an important driver of new member acquisition. Our investments in original and exclusive content and live sports, combined with our third-party partner titles, offer the best selection of premium video content. In addition to delivering compelling value to Prime members, advertisers, and partners, Prime Video is now a large and profitable business in its own right. Let's shift to segment profitability.

North America segment operating income was $8.3 billion with an operating margin of 7.9%. International segment operating income was $1.4 billion with an operating margin of 3.6%. We are pleased with the fulfillment network performance in Q1. The team has worked hard to optimize our network. Overall unit growth at 15% continues to outpace our cost to operate the fulfillment network as outbound shipping costs grew 12% year-over-year and fulfillment expense grew 9% year-over-year, both on an FX neutral basis. As our network efficiency improves, we're able to deliver items faster and improve the customer experience, while at the same time lowering our cost to serve.

Looking ahead, we see meaningful opportunities to further enhance productivity across our global fulfillment network, all while continuing to raise the bar in delivery speed. We will keep optimizing inventory placement to shorten distance traveled, reduce touches per package, and improve consolidation rates. Alongside these efforts, we deploy robotics and automation, which have been integral to our operations for decades. Our latest generation technologies offer a step change in efficiency, which we're deploying in both new and existing facilities. All of our U.S. large format fulfillment center launches in 2026 will have this latest generation technology. We're seeing early positive results with improved site safety, higher productivity, and lower cost to serve. Moving to our AWS segment, revenue is $37.6 billion and growth accelerated 480 basis points to 28% year-over-year, driven by both core and AI services.

We continue to see customers increase cloud migrations and scale their use of AWS core services. Customers seeking the full benefit of AI are accelerating their transition to the cloud. We also see a strong correlation between AI spend and core growth. As customers spend more on AI, we see a corresponding demand increase in core. We expect this to increase over time as customers move more AI workloads into production, strengthening demand for our core services. Our AI revenue is growing triple digits year-over-year. We're bringing more capacity online to meet high customer demand while also driving meaningful efficiency gains across our installed base. Our AI offerings continue to gain traction with customers, and Bedrock has been a significant growth driver. In 2025, we delivered 4x improvements in Trainium 2's token throughput.

Since the majority of Bedrock's workloads run on Trainium, these efficiency gains directly translate into more capacity to serve customers. AWS operating income was $14.2 billion and reflects our strong growth coupled with our focus on driving efficiencies across the business. Turning to total company capital expenditures. Our cash CapEx is $43.2 billion in Q1. This primarily relates to AWS and generative AI as we invest to support strong customer demand. We'll continue to make significant investments, especially in AI, as we believe it to be a massive opportunity with the potential to drive long-term revenue and free cash flow. I'll finish with our financial guidance for Q2.

The following guidance assumes that Prime Day occurs in the second quarter in most of our largest geographies, including the U.S., and that Prime Day occurs in the third quarter in Australia, Brazil, India and Japan. Note that in 2025, Prime Day was in Q3 for all countries. Q2 net sales are expected to be between $194 billion and $199 billion. We estimate the year-over-year impact of changes in foreign exchange rates based on current rates, which we expect to be a headwind of approximately 10 basis points in the quarter. Q2 operating income is expected to be between $20 billion and $24 billion. We continue to see strong sales trends carrying into Q2, and I'll mention a few items on the operating income guidance.

First, this estimate includes the impact of our seasonal step-up in stock-based compensation expense in Q2, driven by the timing of our annual compensation cycle. Second, within the North America segment, we do expect a year-over-year cost increase of approximately $1 billion related to Amazon Leo as we manufacture and launch more satellites in preparation for our service offering. Amazon Leo's commercial service is on track to launch in Q3, and we expect to begin capitalizing certain costs in Q4, including production and launch costs. Third, our guidance anticipates higher transportation costs related to fuel inflation, which is partially offset by the recently implemented fuel and logistics-related FBA surcharge. I'm thankful to our teams across the company for their hard work and dedication to customers.

We remain focused on driving an even better customer experience, which is the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.

Thank you. At this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question. Thank you. If you would like to ask a question, please press star one on your keypad. We ask that when you pose your question, you pick up your handsets to provide optimum sound quality. Once again, to initiate a question, please press star then one on your touch tone telephone at this time. Please hold while we poll for questions. The first question comes from the line of Eric Sheridan with Goldman Sachs. Please proceed with your question.

Thanks so much for taking the question. You know, Andy, across an array of announcements you've made recently with AWS and reflecting upon what you wrote in the shareholder letter, can you talk a little bit about the needed levels of investment over the next couple of years to scale, compute, and capacity to meet your current state of revenue backlog and how we should be thinking about your unique approach to custom silicon and AI infrastructure that maybe positions you competitively to build that scale? Thanks so much.

Yeah. Well to your point, Eric, we've made a lot of announcements over the last several months, and we're really pleased with the growth that we're seeing in AWS right now. You know, 28% year-over-year, fastest growth rate in 15 quarters for us. Haven't grown at this pace since we were about half the size. Growing 28% on a $150 billion annual run rate basis is not simple to do. I think there's a few things around it. You know, first is just we continue to see people choosing AWS for AI in part because of our really broad full stack functionality, in part because people want their inferences, they scale it to be close to their data and their applications. Much more of it lives in AWS than elsewhere.

In part because we have the strongest security and operational performance. You can see it in our numbers. It's leading to very substantial AI growth. At the same time, we're seeing very significant growth in our core business. Some of that are the migrations that have picked up from enterprises, from on-premises to the cloud. A lot of that is also, as AI growth is exploding, it turns out that it leads to a lot of core growth as well. You know, all the post-training, all the reinforcement learning, all the agentic actions and tool usage that these agents are using.

It fits with what you're asking about on the chip side, which is, because we have an unusual collection of chips, we have the leading CPU chip in Graviton, and we have the leading price performance, silicon, AI chip in Trainium, it means that we're really unusually well-positioned for the inflection that we're seeing and the type of growth that we're experiencing. You know, I don't have a new update on capital. Our plan is largely the same. We do view this as truly a once in a lifetime opportunity, where every application that we know of is gonna be reinvented. There are so many new applications that none of us have ever imagined or dreamed we could build that are starting to be built and will be built.

All that is gonna be built on top of AI with a lot of consumption of CPUs and core as well. I expect that we will invest a significant amount of capital over the coming years to pursue that opportunity, and that our customers, our shareholders, and Amazon in general are gonna be much better off down the road because we did so.

The next question comes from the line of Brian Nowak with Morgan Stanley. Please proceed with your question.

Great. Thanks for taking my questions. I have two. One is on the accounting side. We'll probably get it in the queue, but can you just give us an update on what the AWS backlog looks like and sort of any visibility on the breadth of that backlog beyond the big labs? That's the first one. The second one, as you sort of think about milestones for Rufus and agentic commerce for you in 2026, what are you most focused on making sure you accomplish on the agentic side this year, just to make sure you stay at the nice edge of the agentic commerce offerings? Thanks.

Yeah. On the backlog, the backlog, for Q1 is $364 billion. That does not include the recent deal that we announced with Anthropic for over $100 billion. There's reasonable breadth in that as well. It's not just one customer or two customers. On the agentic commerce milestone question, you know, we are very bullish on what agentic commerce will look like. I think it's gonna be very good for customers in the long term. I think it'll be good for us too. You can see some of that focus from us in what we're building with Rufus. If you haven't checked out Rufus in a while, it really substantially improved over the last year, and we have a lot of customers using it.

As I mentioned earlier, you know, you see the monthly active users up over 115% in Rufus and the engagement up over 400% year-over-year. You know, I think, while I think there will be, we'll do a lot of work with third-party horizontal agents to try and make that customer experience better. By the way, I do think today it reminds me in some ways the stage we're in of what we saw in the early days of search engines, and they're trying to refer business to e-commerce. You know, it's never been a giant part of the referrals to our e-commerce business. Over the years, the experience got better.

What you see with agentic commerce is it's a small fraction of what we see with the search engine referrals, but the experience just hasn't gotten great with these third-party horizontal agents yet. They're not often able to get the pricing right or the product information right. They don't have any personalization data or any shopping history. We do wanna see that get better with third-party horizontal agents. We're having conversations with all those folks to try and make that better and find something that works for customers and all the companies. It'll be interesting over time which agents customers choose to use.

I happen to think that if you're going to a particular retailer that you like to do business with and you like to shop from, if they have a great agentic shopping assistant, you're gonna often start there because it's where you're doing your shopping. They have better product information. They have better information about what other customers like you are buying. You can make all sorts of changes to how your account and your shipping information is working there. You know, that's what we're aiming to make Rufus be, is we're aiming to have it be the best shopping assistant anywhere, and I think we're on that path.

Thank you. The next question comes from the line of Justin Post with Bank of America. Please proceed with your question.

Thank you. I'd like to ask two, one on models and then one on training tips. On models, it looks like you might have access to the full suite of OpenAI models on Bedrock. Just wondering how big of an unlock that is and how focused maybe you are on your own Nova model. Second, shareholder letter mentioned you might be able to sell racks of Trainium. Just wondering, you know, with your capacity constraints, how you think about timing of that and how big of an opportunity. Thank you.

Yeah. On the models question, I think the fact that we're gonna have all the OpenAI models available in Bedrock is a big deal. It's a big deal for customers. You know, we have, we obviously have a very large amount of AI being done in Bedrock today on the models we have, and this is Anthropic and Llama and Mistral and, you know, a host of others. The one thing you learn over and over again with every technology, it was true in databases, it was true in analytics, it was true in models. It's true in chips too, by the way, is that customers want choice. There is not one tool to rule the world, and they want choice. Each of the models are better at some things than the other models.

People for a long time have wanted to consume OpenAI models in Bedrock. You know, we just enabled yesterday, the stateless model, the 5.4 model, and we'll enable the most recent 5.5 model in the next couple weeks. You know, most of the model work and most of the AI has been done in these stateless models, you know, kind of tokens in and tokens out. While I think there will continue to be a lot to work done that way, I think the future of using these models is a stateful model, a stateful API. That's because when you're building agents, you're building AI applications, you don't wanna start anew every time you interact with the model.

Amazon (AMZN) Q1 2026 Earnings Call Transcript

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