Q1 2026 net sales were $181.519B and operating income was $23.852B.
From Portfolio Manager reports
Security report / AMZN
AMZN Operating Console
Amazon is an advantaged platform with a high capital-productivity test. Q1 2026 showed strong consolidated revenue, AWS reacceleration, AWS profit dominance, and better retail operating income. The proof burden is whether AWS and AI capacity, fulfillment automation, Amazon LEO, and strategic AI investments turn very large capital spending into durable free cash flow before valuation tolerance weakens.
Ticker
AMZN
Knowledge reviewed
2026-05-24
Links checked
2026-06-21
Chart source
Local API
Module 01 / Price
API required
Selected-Security Chart
Loading AMZN daily chart from the local report API.
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Module 02 / Proof window
Capex return test
Current Company View
Next read
Q2 must show AWS growth, AWS margin, retail operating income, and capex cadence supporting a path back to durable FCF.
AWS was about one-fifth of Q1 sales but most segment operating income, while AI and technology infrastructure are driving capex.
TTM operating cash flow was $148.531B versus $151.003B of property and equipment purchases.
Q2 guide delivery, AWS growth and margin, retail cost bridge, LEO costs, commitments, and June financing context.
Q1 sales
$181.519B
Consolidated net sales
Q1 operating income
$23.852B
Company total
AWS sales / OI
$37.587B / $14.161B
Q1 2026
TTM OCF / capex
$148.531B / $151.003B
TTM ended Mar. 31, 2026
Liquidity
$143.1B
Cash and marketable securities
Q2 sales guide
$194B-$199B
Operating income guide $20B-$24B
Trade Plan
Selected Security Trade Plan
Exposure Map
Business Profile, Segments, And Exposure
Amazon is a scale commerce, marketplace, advertising, subscription, cloud, media, device, and infrastructure company. The segment read matters because retail supplies most revenue while AWS supplies most profit.
Business model
Retail ecosystem plus AWS infrastructure
Retail monetizes selection, convenience, Prime, third-party sellers, advertising, and fulfillment. AWS monetizes cloud infrastructure, AI services, platform services, and custom silicon.
Disclosure map
North America, International, and AWS
Segment disclosure is useful, but Amazon does not separately disclose profit for advertising, Prime, AI services, custom silicon, LEO, or private AI investments.
AWS
Main profit pool.
Q1 AWS sales were $37.587B and operating income was $14.161B, about 59% of segment operating income before unallocated effects.
More useful evidence
AWS growth, margin, backlog conversion, Trainium economics, power availability, and AI capacity utilization.
North America
Largest sales segment.
Q1 North America sales were $104.143B and operating income was $8.267B.
More useful evidence
Unit growth, fulfillment cost growth, outbound shipping costs, advertising, seller services, LEO costs, and tariff pass-through.
International
Profitable but lower-margin.
Q1 International sales were $39.789B and operating income was $1.424B.
More useful evidence
FX, country mix, unit economics, freight, tariffs, and promotional pressure.
AI and infrastructure capital
Core proof burden.
Q1 cash capex was $43.2B, primarily for AWS and generative AI infrastructure plus fulfillment capacity.
More useful evidence
Revenue, margin, and FCF conversion from new data-center, chip, power, and logistics capacity.
Value Driver Board
Relative Value And Value Drivers
AMZN is priced for execution. The valuation bridge is whether AWS/AI growth and retail productivity convert into operating income and free cash flow while commitments and regulatory risk stay contained.
AWS growth
28% Q1 growth
AWS reacceleration supports the capex cycle only if margin and utilization stay healthy.
Next: AWS revenue, operating income, backlog, and capacity commentary.
FCF conversion
OCF below capex
TTM operating cash flow was slightly below property and equipment purchases.
Next: cash capex cadence, net PPE purchases, leases, and purchase obligations.
Retail margin
NA + International profit
Retail operating income improved, but fuel, freight, tariffs, labor, LEO, and promotions remain margin tests.
Next: segment OI, fulfillment expense, shipping cost, and advertising/seller-service mix.
Commitments
$569.280B
Principal contractual commitments make capex ROIC and financing flexibility more important.
Next: debt, leases, purchase obligations, AI investments, and June financing filings.
Guidance Tests
Guidance Path And What Changed
Amazon guided Q2 2026 net sales to $194B-$199B and operating income to $20B-$24B. The guidance is constructive, but the read is spend-heavy because Prime Day timing, LEO costs, fuel pressure, seasonal stock-based compensation, and AI capex all affect interpretation.
Can AWS growth carry the investment cycle?
Confirm AWS growth remains near the Q1 pace with stable or better operating margin.
Warn if AWS growth slows while capex, depreciation, or power and chip costs keep rising.
Can retail margins absorb cost pressure?
Confirm retail operating income improves with unit growth, fulfillment productivity, advertising, and seller services.
Warn if fuel, freight, tariffs, labor, LEO, or promotions absorb the margin bridge.
Can FCF recover while capex stays high?
Confirm operating cash flow starts to outrun net PPE purchases, leases, and purchase obligations.
Warn if commitments keep rising while free cash flow remains weak.
Operating Evidence
Operating Evidence And KPIs
These tiles summarize the filed source evidence. Use the lane and raw outputs for the full claim map.
$181.519B / $23.852B
Q1 consolidated sales and operating income show strong operating momentum.
$14.161B OI
AWS supplied most Q1 segment operating income despite about one-fifth of sales.
$43.2B Q1
Q1 cash capex was primarily tied to AWS, generative AI infrastructure, and fulfillment capacity.
$569.280B
Contractual commitments raise the return-on-capital burden.
Capital Ledger
Financial Quality And Capital Allocation
Amazon is highly liquid, but the funding profile has become more capital intensive. The current question is not near-term solvency; it is whether new debt, leases, purchase obligations, and AI investments earn enough return.
Liquidity and obligations
$143.1B liquid balances
At March 31, 2026, Amazon had $143.1B of cash, cash equivalents, and marketable securities, $122.632B of long-term debt face value, and $569.280B of principal contractual commitments.
June financing context
New financing checked after the lane date
June 2026 web checks flagged post-lane financing context, including a delayed-draw term-loan report and a Canadian notes issuance report. Use the SEC company filing feed to verify exact accession documents before promoting either item into canonical research.
Position Board
Competitive Position
Amazon has real competitive advantages in AWS and retail infrastructure. The edge is credible, but it now requires large data-center, power, chip, logistics, and regulatory execution.
What AMZN has
AWS has cloud scale, workload and data gravity, broad services, backlog, and custom silicon.
Prime, marketplace density, seller services, advertising, fulfillment scale, and delivery convenience support retail resilience.
Large liquid balances give Amazon room to fund a heavy investment cycle.
What is not proven
AI infrastructure utilization, useful lives, power/chip cost exposure, and returns are not externally verifiable.
Advertising, Prime, AI services, custom silicon, LEO, and private AI investments are not separately disclosed.
Antitrust, labor, tax, privacy, marketplace, AI-service, and consumer-protection proceedings remain live.
Street View
Ownership, Flows, Valuation, And Street Views
Official filings and Amazon releases carry the operating evidence. Outside market-data items are dated context and should be refreshed before trading-sensitive use.
IR, filings, and releases checked 2026-06-21
Amazon source routes include the Q1 2026 release, Q1 10-Q, FY2025 10-K, 2026 proxy, SEC company filing feed, and official press archive.
Dashboard use: source routing and filing freshness. Amazon investor relationsExecution-sensitive megacap multiple
The filed lane frames AMZN around $266, roughly $2.86T of market value, and about 32x trailing earnings in late May public market data.
Dashboard use: proof burden, not a live quote. Knowledge lane valuation sectionStockAnalysis and MarketBeat checked 2026-06-21
Outside-view pages showed a later AMZN close of $244.39, market cap of $2.63T, P/E of 29.23, StockAnalysis target of $312.99, and MarketBeat target of $312.78. These are dated market context only.
Dashboard use: outside-view valuation context; local chart API remains the report chart source. StockAnalysis AMZN quote MarketBeat AMZN forecastLow short-interest setup
MarketBeat showed May 29 short interest of 92.45M shares. The filed lane treats short interest as low relative to shares outstanding and not a short-squeeze thesis.
Dashboard use: flow sensitivity, not operating evidence. MarketBeat AMZN short interest
Scenario Board
Scenario Assessment And Sensitivities
The base case is strong operating momentum with a weak FCF proof item. Upside requires AI capacity monetization and cost relief; downside starts with AWS deceleration or capex duration extending without visible returns.
Base
AWS remains the dominant profit pool, retail margins hold with fulfillment productivity and monetization layers, and the market tolerates weak FCF while evidence stays constructive.
Upside
AWS AI capacity is utilized at attractive margins, capex intensity begins to show operating leverage, FCF improves, and retail margins benefit from easing fuel, freight, tariff, and promotion pressure.
Downside
AWS growth or margins weaken while capex and commitments remain high, FCF stays weak, and retail margin pressure from fuel, freight, labor, tariffs, LEO, or promotions reduces confidence.
Trigger Stack
Monitoring Triggers
These are business evidence checks. Chart overlays remain in the shared overlay rules, outside this page.
AWS
Growth, margin, and utilization
Confirm AWS growth stays near or above the Q1 pace with stable operating margin and strong backlog conversion.
Warn if AWS growth slows while capex and margin pressure remain elevated.
FCF
Operating cash flow versus capex
Confirm operating cash flow begins to exceed net PPE purchases and investment commitments.
Warn if FCF remains negative or near zero while commitments keep rising.
Retail margin
Fulfillment productivity versus cost pressure
Confirm unit growth, fulfillment productivity, ads, and seller services support segment operating income.
Warn if fuel, freight, tariffs, labor, LEO, or promotions absorb the efficiency gain.
Q2 guide
$194B-$199B sales and $20B-$24B operating income
Confirm Q2 lands inside or above the guide with clean AWS and retail evidence.
Warn if Prime Day timing, SBC, LEO, fuel, or AI capex clouds the operating-income read.
Financing
Debt, leases, purchase obligations, and AI commitments
Confirm new debt and commitments stay tied to visible AWS and logistics monetization.
Warn if obligations rise faster than operating cash flow and FCF recovery.
Regulatory
Legal, tax, labor, marketplace, privacy, and AI-service proceedings
Confirm proceedings do not materially change marketplace, ads, Prime, AWS, labor, or data economics.
Warn if settlements, restrictions, or practice changes affect costs or monetization.
Risk Punch Cards
Risks, Invalidations, And Quality Flags
The main risks are AI capex ROIC, FCF duration, retail margin reversal, regulatory/legal cost, commitment growth, data-security exposure, and private AI investment valuation.
AI capex ROIC
Basis
AI infrastructure and AWS capex are absorbing large amounts of cash.
Warning
AWS demand, utilization, power availability, custom silicon economics, or backlog conversion falls short.
Reduce concern
AWS growth and margin improve while capex growth moderates relative to revenue.
FCF duration
Basis
TTM capex slightly exceeded TTM operating cash flow.
Warning
Free cash flow remains negative or near zero longer than valuation tolerates.
Reduce concern
Operating cash flow growth outruns capex, leases, and commitments.
Retail cost pressure
Basis
North America and International remain exposed to shipping, fulfillment, fuel, labor, tariffs, inventory, and promotions.
Warning
Cost pressure absorbs fulfillment productivity, ads, and seller-service gains.
Reduce concern
Segment operating income improves while cost growth stays below unit growth.
Regulatory proceedings
Basis
Amazon faces recurring proceedings across competition, tax, labor, privacy, AI, marketplace, and consumer-protection topics.
Warning
Cash costs or practice changes affect marketplace, ads, Prime, AWS, labor, or data economics.
Reduce concern
Proceedings remain manageable and do not change business practices materially.
Disclosure opacity
Basis
Amazon does not separately disclose profit for advertising, Prime, AI services, custom silicon, LEO, or private AI investments.
Warning
Investors infer profitability from broad segment data while the debated pools stay hidden.
Reduce concern
Management supplies clearer evidence of monetization, utilization, and capital returns.
Private AI valuation
Basis
The Q1 filing disclosed OpenAI and Anthropic exposure, including a $15.0B OpenAI investment and a conditional additional $35.0B commitment.
Warning
Fair-value volatility or strategic concentration obscures operating performance.
Reduce concern
Investment economics and AWS revenue linkage become clearer.
Diagnostics
Diagnostics, Freshness, And Known Unknowns
This report is a projection of the filed AMZN lane with dated official web checks. It does not refresh canonical research.
Freshness
Lane source run generated 2026-05-24
Source run
Market data
Web check
Latest paired AMZN profile and research projections were generated 2026-05-24T23:40:44Z.
Lane market data is May 2026 public-page context; June 2026 outside-view data is recorded separately.
Official IR, Q1 release, Q1 10-Q, 10-K, proxy, 8-K financing filings, and press archive were checked 2026-06-21.
Known unknowns
Proof still needed
AI capex ROIC
Profit-pool detail
Source gaps
Exact utilization, contracted economics, useful lives, power and chip costs, and ROIC are not externally verifiable.
Advertising, Prime, AI services, custom silicon, LEO, and private AI investments are not separately disclosed.
Rating-agency commentary, debt covenants, company-certified transcripts, direct market feeds, and current investor deck evidence remain incomplete.
Source Bay
Links And Filings
Human-useful routes to the source lane, raw projections, filings, IR pages, metadata, and local chart host.
Canonical AMZN knowledge lane
Source-routed company research, claim/evidence map, scenarios, diagnostics, and known unknowns.
Latest profile projection
Scenario, trigger, risk, and unknown objects for the report layer.
Latest research projection
Q1 metrics, segment evidence, guidance, capital allocation, source refs, claim IDs, and evidence IDs.
Amazon investor relations
Official IR route with quarterly results, SEC filings, annual reports, events, and press releases.
Q1 2026 earnings release
Official April 29, 2026 release with segment results, guidance, and FCF reconciliation.
Q1 2026 10-Q
SEC Form 10-Q for the quarter ended March 31, 2026.
FY2025 10-K
SEC Form 10-K for segment, capex, special charges, commitments, and risk baseline.
2026 proxy statement
SEC proxy route for ownership, compensation, and board-leadership context.
May 2026 8-K
Annual meeting voting results and board/proposal outcomes.
SEC company filing feed
Official browse route for current Amazon filings, including post-lane financing checks that should be verified by accession before canonical use.
MarketWatch financing context
Dated outside-view context for the reported June 2026 term-loan and Canadian notes financing items; not canonical research.
Amazon press archive
Official press-release route checked for current AWS, retail, Amazon Now, fulfillment, and freight items.
StockAnalysis AMZN quote
Dated outside-view quote and valuation context checked 2026-06-21; not canonical research.
MarketBeat AMZN short interest
Dated outside-view short-interest route used only for flow context.
MarketBeat AMZN forecast
Dated outside-view analyst target route used only for street-context routing.
Report metadata JSON
Machine provenance, page sections, source trail, chart endpoints, and web freshness notes.
Fallback chart page
Universal security chart route for AMZN when a detailed page is not needed.
Local chart API: supplies the daily 9-month and weekly 5-year AMZN chart views.
Chart overlays: this HTML and JSON do not store page-specific overlay definitions. Shared overlay rules resolve AMZN levels separately.