🚨 Amazon delivers a strong Q2, but its outlook disappoints the market. 📉 Amazon clearly surpassed quarterly expectations: • EPS: $5.75 (expected: $1.99) ✅ • Revenue: $200.6 billion (expected: $197.0 billion) ✅ • Operating margin: 13.7% (expected: 12.0%) ✅ • Operating income: $27.46 billion (expected: $23.61 billion) ✅ • AWS revenue: $42.23 billion (+37% currency-neutral)—also significantly above expectations. Notably, Amazon’s AI business within AWS has now reached an annualized revenue run rate of over $25 billion. The company is heavily benefiting from the ongoing AI boom and further expanding its leadership in cloud computing. ⚠️ The catch: The Q3 guidance came in weaker than anticipated. • Revenue guidance: $197–202 billion (consensus: $203.9 billion) • Operating income guidance: $22.5–26.5 billion (consensus: $25.1 billion) Additionally, free cash flow has declined to -$7.6 billion over the last twelve months, driven by continued massive investments in AI infrastructure, data centers, and cloud capacity. 👉 Bottom line: Operationally, Amazon delivered a very strong quarter, demonstrating how robust AI demand is fueling AWS growth. However, the cautious Q3 outlook may pressure the stock after hours.