AWS Revenue Surges in Amazon's Q2 Earnings's cloud business is booming.

The retail giant reported its second quarter earnings on Thursday, breaking out its Amazon Web Services (AWS) unit as a separate reporting category for only the second time (the first was for its Q1 earnings report in April).

AWS raked in $1.82 billion in revenue for the quarter ended June 30, a staggering 81% jump from the year-ago period when revenue was roughly $1 billion. AWS revenue also went up quarter-to-quarter by 16.5%, from $1.57 billion in Q1.

That growth far exceeds analysts' forecasts, which had been more in the ballpark of 55% year-over-year growth and $1.56 billion in revenue.

Operating income for AWS was $391 million, up 314% year-over-year and up 48% quarter-to-quarter.

AWS was's fastest-growing segment by far, dwarfing the year-over-year growth of the "North America" (26%) and "International" (3%) segments.

In Q1, CEO Jeff Bezos called AWS a "$5 billion business." Thursday's Q2 results put AWS well ahead of that pace, with a run rate that now exceeds $7 billion.

For comparison, Microsoft -- a major rival in the cloud computing space -- this week reported a run rate of $8 billion for its commercial cloud business, although the company did not break out how much of that comes from Office 365, its cloud-based productivity suite, and how much of it is from Azure, its cloud platform.

Overall, beat analysts' expectations, reporting $23.19 billion in revenue for the quarter, marking a year-over-year growth rate of 20%. Operating income came in at $464 million and earnings-per-share at $0.19.

About the Author

Gladys Rama (@GladysRama3) is the editorial director of Converge360.


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