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00:02Amazon reported surging second quarter cloud growth driven by strong AI demand
00:07and raised its annual capital spending forecast.
00:10The tech giant reported earnings of 5.75 per share,
00:14which may not be comparable with estimates,
00:16while revenue of $261 billion beat expectations of $196.47 billion.
00:23Amazon Web Services revenue reached $42.2 billion
00:26and advertising revenue totaled $90 or $81 billion, both beating expectations.
00:31The company raised its 2026 capital expenditure forecast
00:35to $290 billion from $200 billion as it increases spending on AI.
00:40CEO Andy Jassy said AWS is booming
00:42as Amazon's AI and in-house chip businesses
00:46each surpassed a $25 billion annual revenue run rate.
00:50Amazon's heavy investment pushed trailing 12-month free cash flow
00:54to a $7.6 billion outflow,
00:56but Jassy said the spending is needed to meet surging cloud demand
00:59as AWS backlog reached $496 billion in each.
01:03Shares surged more than 10% in extended trading.
01:07For all things money, visit Benzinga.com.
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