What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-04-30 · 180 added, 98 removed, 569 unchanged (33% of the section changed)

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Three Months Ended

March 31, Twelve Months Ended

June 30, Six Months Ended

June 30, Twelve Months Ended

2025 2026 2025 2026 2025 2026

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Net product sales $ 68,246 $ 77,602 $ 132,216 $ 148,906

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Net income $ 18,164 $ 62,647 $ 35,291 $ 92,902

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Change in net unrealized gains (losses), net of tax of $( 12 ), $( 13,695 ), $( 23 ), and $( 14,035 )

reclassification adjustments for net losses (gains) included in “Other income (expense), net,” net of tax of $ 809 and $ 1,142

40 41,988 77 42,814

reclassification adjustments for losses (gains) included in “Other income (expense), net,” net of tax of $ 5 , $ 0 , $ 814 , and $ 1,142

( 17 ) — ( 2,471 ) ( 3,337 )

Net change 23 41,988 ( 2,394 ) 39,477

Other, net of tax of $( 1 ), $ 1 , $ 0 , and $( 1 )

( 3 ) 1 ( 1 ) ( 1 )

Total other comprehensive income (loss) 3,334 41,419 2,454 38,057

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(in millions, except per share data)

December 31, 2025 March 31, 2026

December 31, 2025 June 30, 2026

Current assets:

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We review the useful lives of equipment on an ongoing basis.

During Q2 2026, we received approximately $ 640 million of tariff refunds under the International Emergency Economic Powers Act (“IEEPA”).

These tariff refunds were primarily recorded as a reduction to “Cost of sales” and primarily impacted our North America segment.

This represents the significant majority of refunds we expect to receive.

Supplemental Cash Flow Information

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Three Months Ended

March 31, Twelve Months Ended

June 30, Six Months Ended

June 30, Twelve Months Ended

2025 2026 2025 2026 2025 2026

14 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Shares used in computation of basic earnings per share 10,637 10,769 10,620 10,756

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Marketable equity securities valuation gains (losses), net $ 388 $ 1,319 $ 250 $ 430

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Total other income (expense), net $ 1,117 $ 53,415 $ 3,866 $ 69,062

The reclassification adjustments for the gains on available-for-sale debt securities of $ 3.3 billion and $ 4.5 billion in Q1 2025 and Q1 2026 are primarily from the portions of our convertible notes investments in Anthropic, PBC (“Anthropic”) that were converted to nonvoting preferred stock during Q1 2025 and Q1 2026.

The upward adjustments relating to equity investments in private companies of $ 12.3 billion in Q1 2026 reflect observable changes in prices, primarily from our nonvoting preferred stock in Anthropic.

The reclassification adjustments for the gains on available-for-sale debt securities of $ 3.3 billion and $ 4.5 billion for the six months ended June 30, 2025 and 2026 are primarily from the portions of our convertible notes investments in Anthropic, PBC (“Anthropic”) that were converted to nonvoting preferred stock during Q1 2025 and Q1 2026.

The upward adjustments relating to equity investments in private companies of $ 50.5 billion in Q2 2026 and $ 62.8 billion for the six months ended June 30, 2026 reflect observable changes in prices, primarily from our nonvoting preferred stock in Anthropic.

Derivatives and Hedging

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Termination penalties are generally not based on fair value measurements.

As of March 31, 2026, the energy contract quantities subject to derivative accounting fair value measurements were approximately 200 million megawatt-hours and the weighted-average remaining duration of these contracts is approximately 15 years, with the majority of these megawatt-hours to be delivered beyond the next nine years .

The impact of these fair value measurements on our consolidated statement of operations in Q1 2025 and Q1 2026 was not significant.

As of June 30, 2026, the energy contract quantities subject to derivative accounting fair value measurements were approximately 270 million megawatt-hours and the weighted-average remaining duration of these contracts is approximately 15 years, with the majority of these megawatt-hours to be delivered beyond the next nine years .

The impact of these fair value measurements on our consolidated statements of operations was not significant in Q2 2025 and for the six months ended June 30, 2025, and resulted in net unrealized gains of $ 551 million in Q2 2026 and $ 599 million for the six months ended June 30, 2026, recorded within “Technology and infrastructure” and primarily impacting our AWS segment.

Changes in fair value measurements will create unrealized gains and losses recorded within operating expenses on our statements of operations with corresponding assets (unrealized gains) and liabilities (unrealized losses) recorded on our balance sheet within “Other assets” and “Other long-term liabilities.” As of December 31, 2025 and June 30, 2026, we had recorded assets of $ 112 million and $ 705 million, and liabilities of $ 139 million and $ 133 million.

Certain of our energy contracts are subject to regulatory approval and are exempt from derivative guidance until the approval is obtained.

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A contract that no longer meets the NPNS exemption must be measured at fair value with immediate recognition in our financial statements.

Net Investment Hedges — Our March 2026 Euro-denominated Notes issuance of € 14.5 billion creates an exposure to changes in foreign exchange rates.

We designated these notes as net investment hedges to mitigate foreign currency exposures related to the translation of our investments in foreign operations to U.S.

Net Investment Hedges — Our foreign currency-denominated unsecured senior notes create exposure to changes in foreign exchange rates.

As of June 30, 2026, we have designated $ 20.7 billion of our Euro- and Canadian Dollar-denominated Notes as net investment hedges to mitigate foreign currency exposures related to the translation of our investments in foreign operations to U.S.

Foreign currency unrealized gains and losses on these notes are included in “Accumulated other comprehensive income (loss),” a separate component of stockholders’ equity, until the foreign operations are sold or substantially liquidated, at which point these amounts and any translation adjustment of the foreign operations are reclassified to our consolidated statements of operations.

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This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category.

The inventory valuation allowance, representing a write-down of inventory, was $ 3.3 billion and $ 2.8 billion as of December 31, 2025 and March 31, 2026.

The inventory valuation allowance, representing a write-down of inventory, was $ 3.3 billion and $ 3.0 billion as of December 31, 2025 and June 30, 2026.

Accounts Receivable, Net and Other

Included in “Accounts receivable, net and other” on our consolidated balance sheets are receivables primarily related to customers, vendors, and prepaid expenses and other current assets.

As of December 31, 2025 and March 31, 2026, customer receivables, net, were $ 40.4 billion and $ 43.3 billion, vendor receivables, net, were $ 15.9 billion and $ 16.4 billion, and other receivables, net, were $ 4.5 billion and $ 8.6 billion.

Prepaid expenses and other current assets, which include amounts related to satellite network launch services deposits, were $ 6.9 billion and $ 7.2 billion as of December 31, 2025 and March 31, 2026.

As of December 31, 2025 and June 30, 2026, customer receivables, net, were $ 40.4 billion and $ 49.2 billion, vendor receivables, net, were $ 15.9 billion and $ 21.7 billion, and other receivables, net, were $ 4.5 billion and $ 9.8 billion.

Prepaid expenses and other current assets, which include amounts related to satellite network launch services deposits, were $ 6.9 billion and $ 7.4 billion as of December 31, 2025 and June 30, 2026.

We currently expense satellite network launch services deposits upon launch to “Technology and infrastructure.”

We estimate losses on receivables based on expected losses, including our historical experience of actual losses.

The allowance for doubtful accounts was $ 2.4 billion and $ 2.6 billion as of December 31, 2025 and March 31, 2026.

The allowance for doubtful accounts was $ 2.4 billion and $ 2.8 billion as of December 31, 2025 and June 30, 2026.

Digital Video and Music Content

Included in “Other assets” on our consolidated balance sheets are the total capitalized costs of video, which is primarily released content, and music, which as of December 31, 2025 and March 31, 2026 were $ 21.3 billion and $ 21.5 billion.

Total video and music expense was $ 5.1 billion and $ 6.0 billion in Q1 2025 and Q1 2026.

Total video and music expense was $ 5.1 billion and $ 6.9 billion in Q2 2025 and Q2 2026, and $ 10.2 billion and $ 12.9 billion for the six months ended June 30, 2025 and 2026.

Unearned Revenue

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Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships.

Our total unearned revenue as of December 31, 2025 was $ 25.0 billion, of which $ 9.4 billion was recognized as revenue during the three months ended March 31, 2026.

Included in “Other long-term liabilities” on our consolidated balance sheets was $ 4.4 billion of unearned revenue as of December 31, 2025 and March 31, 2026.

Our total unearned revenue as of December 31, 2025 was $ 25.0 billion, of which $ 15.2 billion was recognized as revenue during the six months ended June 30, 2026.

Included in “Other long-term liabilities” on our consolidated balance sheets was $ 4.4 billion and $ 4.5 billion of unearned revenue as of December 31, 2025 and June 30, 2026.

Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that we expect to fulfill but have not yet been recognized in our financial statements.

For contracts with original terms that exceed one year, those commitments not yet recognized were approximately $ 364 billion as of March 31, 2026.

For contracts with original terms that exceed one year, those commitments not yet recognized were approximately $ 496 billion as of June 30, 2026.

The weighted-average remaining life of our long-term contracts is 6.4 years.

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In Q1 2026, AWS and OpenAI Group PBC (“OpenAI”) announced an expansion of the existing $ 38.0 billion multi-year commitment and commercial arrangement with OpenAI by $ 100.0 billion over 8.0 years, which includes contractual obligations related to the performance of AWS chips.

In Q2 2026, AWS and Anthropic announced an expansion of the strategic collaboration and existing multi-year commitment by more than $ 100.0 billion over 10.0 years, which includes contractual obligations related to the performance of AWS chips.

Accounting Pronouncements Not Yet Adopted

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Cash, Cash Equivalents, Restricted Cash, and Marketable Securities

As of December 31, 2025 and March 31, 2026, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S.

As of December 31, 2025 and June 30, 2026, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S.

government and agency securities, other investment grade securities, and marketable equity securities.

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Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for identical unrestricted assets in active markets, similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants.

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We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities.

Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

Other marketable securities were valued either based on recent trades of unrestricted securities in active markets, securities in inactive markets, or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

The following table summarizes, by major investment type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions):

December 31, 2025 March 31, 2026

December 31, 2025 June 30, 2026

Fair Value Cost or

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Other financial instruments 129 27 — — 27

Equity securities (1) $ — $ 1,189

$ 126,325 $ 121,075 $ 7 $ ( 67 ) $ 125,702

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___________________

(1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $( 205 ) million and $( 883 ) million in Q1 2025 and Q1 2026.

(1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $ 393 million and $ 1.3 billion in Q2 2025 and Q2 2026, and $ 188 million and $ 454 million for the six months ended June 30, 2025 and 2026.

(2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable debt securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, standby and trade letters of credit, and licenses of digital media content.

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See “Note 4 — Commitments and Contingencies.”

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of March 31, 2026 (in millions):

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of June 30, 2026 (in millions):

Cost Estimated

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In making these estimates, we utilized valuation methods based on information available, including the rights and obligations of the convertible notes, other outstanding classes of securities, observable transactions such as new securities offerings, estimates of expected time to and type of liquidity events and anticipated securities offerings, and discounts for lack of marketability.

The convertible notes are subject to our ownership cap, which may be waived at our election.

In Q1 2025 and Q1 2026, a portion of the then-outstanding notes was converted to nonvoting preferred stock.

The investments in nonvoting preferred stock are initially recorded at their estimated fair value at the time of each conversion and are accounted for as a component of our equity investments in private companies not accounted for under the equity-method, with future adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “Other income (expense), net” on our consolidated statements of operations.

As a result of these conversions, a portion of the unrealized gain associated with the notes included in “Accumulated other comprehensive income (loss)” was

reclassified and a gain of approximately $ 3.3 billion and $ 4.5 billion was recorded in “Other income (expense), net.” In Q1 2026, we also recorded an upward adjustment of approximately $ 12.3 billion to our nonvoting preferred stock in “Other income (expense), net” to reflect observable changes in price.

As of December 31, 2025 and March 31, 2026, the amounts recorded on our consolidated balance sheets for nonvoting preferred stock were approximately $ 14.8 billion and $ 32.0 billion.

As of December 31, 2025 and March 31, 2026, the estimated fair value of our convertible notes recorded on our consolidated balance sheets was approximately $ 45.8 billion and $ 42.2 billion, and the associated unrealized gain included in “Accumulated other comprehensive income (loss)” was $ 39.5 billion and $ 36.3 billion.

We also have a commercial arrangement primarily for the provision of AWS cloud services, which includes the use of AWS chips.

Subsequent to March 31, 2026, we invested $ 5.0 billion in Anthropic nonvoting preferred stock.

Additionally, we amended our commercial arrangement which is primarily for the provision of AWS cloud services and includes contractual obligations related to the performance of AWS chips.

Furthermore, we entered into a financing arrangement to make available to Anthropic an aggregate facility not to exceed $ 20.0 billion that will expire 30 months after a liquidity event, as defined, such as an Anthropic initial public offering or direct listing of equity securities.

recognized in “Other income (expense), net” on our consolidated statements of operations.

As a result of these conversions, a portion of the unrealized gain associated with the notes included in “Accumulated other comprehensive income (loss)” was reclassified and gains of approximately $ 3.3 billion and $ 4.5 billion for the six months ended June 30, 2025 and 2026 were recorded in “Other income (expense), net.”

In Q2 2026, we invested $ 5.0 billion in Anthropic Series G nonvoting preferred stock.

We also amended our commercial arrangement primarily for the provision of AWS cloud services, which includes contractual obligations related to the performance of AWS chips.

Additionally, we entered into a financing arrangement to make available to Anthropic an aggregate facility not to exceed $ 20.0 billion that will expire 30 months after an Anthropic liquidity event, including an initial public offering (“IPO”).

At inception, there is no amount available to be drawn against and as we reach certain delivery milestones of compute capacity under the amended commercial arrangement, amounts under this facility are made available for Anthropic to draw upon at its discretion.

Draws against the facility will be in the form of new Anthropic convertible notes or, after a liquidity event, Anthropic common stock, which will be issued to us in exchange for cash.

We also have an option to invest up to $ 5.0 billion in Anthropic’s future equity financings which if elected would reduce the amount available under the facility by the amount exercised under the option.

OpenAI — In Q1 2026, we invested $ 15.0 billion in Series C Preferred Stock of OpenAI, and we also entered into an equity commitment letter agreement (the “Letter Agreement”), pursuant to which we agreed to purchase additional shares of Series C Preferred Stock (the “Commitment Shares”) with an aggregate purchase price of $ 35.0 billion (the “Commitment Amount”).

We may, in our sole discretion, elect to purchase all or any portion of the Commitment Shares at any time pursuant to the Letter Agreement.

To the extent that we have not done so previously, we are obligated to purchase all remaining Commitment Shares upon the earlier to occur of (i) OpenAI meeting specified milestones, and (ii) OpenAI directly or indirectly consummating an initial public offering or direct listing of equity securities in the United States (a “Public Listing Transaction”), in each case subject to certain terms and conditions.

If certain conditions are not satisfied until after a Public Listing Transaction occurs, then our purchase commitment will relate to the class of OpenAI’s common stock that is publicly traded at the same effective price per share as the Series C Preferred Stock price.

The parties’ obligations under the Letter Agreement will terminate if we have not invested the Commitment Amount by December 31, 2028, which date may accelerate under certain circumstances.

We account for our investment in Series C Preferred Stock and purchase commitment as a component of our equity investments in private companies not accounted for under the equity-method, with future adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “Other income (expense), net” on our consolidated statements of operations.

Additionally, in Q1 2026, we and an affiliate of OpenAI entered into (i) a commercial arrangement primarily for the provision of AWS cloud services, which includes the use of AWS chips, and (ii) a joint collaboration agreement pursuant to which certain services using OpenAI models will be made available to the Company and on AWS.

As of December 31, 2025 and March 31, 2026, equity investments in private companies not accounted for under the equity-method, which primarily relate to nonvoting preferred stock in Anthropic and preferred stock in OpenAI, had a carrying value of $ 16.2 billion and $ 48.1 billion, with adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “Other income (expense), net” on our consolidated statements of operations.

As of December 31, 2025 and March 31, 2026, equity investments accounted for under the equity-method of accounting, including investments for which we have elected the fair value option, had a carrying value of $ 659 million and $ 923 million.

Draws against the facility will be in the form of new Anthropic convertible notes or, after an IPO or other liquidity event and subject to our ownership cap, Anthropic common stock, which will be issued to us in exchange for cash.

Under this financing arrangement, in Q2 2026, we exercised our option to participate in subsequent Anthropic equity financings by investing $ 5.0 billion in Anthropic Series H nonvoting preferred stock, which reduced the amount available under the facility to $ 15.0 billion.

We recorded upward adjustments of approximately $ 50.5 billion in Q2 2026 and $ 62.8 billion for the six months ended June 30, 2026 to our nonvoting preferred stock in “Other income (expense), net” to reflect observable changes in price related to Anthropic’s fundings.

In making these Level 3 fair value measurements, we utilized valuation methods based on information available, including the rights and obligations of the nonvoting preferred stock, other outstanding classes of securities, estimates of expected time to and type of liquidity events and anticipated securities offerings, and discounts for lack of marketability.

As of December 31, 2025 and June 30, 2026, the amounts recorded on our consolidated balance sheets for nonvoting preferred stock were approximately $ 14.8 billion and $ 92.5 billion.

As of December 31, 2025 and June 30, 2026, the estimated fair value of our convertible notes recorded on our consolidated balance sheets was approximately $ 45.8 billion and $ 97.9 billion, and the associated unrealized gain included in “Accumulated other comprehensive income (loss)” was $ 39.5 billion and $ 92.0 billion.

In the event Anthropic consummates an IPO or other liquidity event, then-outstanding notes would be converted to nonvoting common stock, subject to our ownership cap, and nonvoting preferred stock would be converted to nonvoting common stock.

Any then-outstanding notes that are not converted to nonvoting common stock would continue to be convertible to nonvoting common stock, subject to our ownership cap.

We expect to be subject to a customary lock-up period following an IPO, and thereafter will remain subject to applicable securities laws restrictions.

OpenAI — In Q1 2026, we and OpenAI entered into (i) a commercial arrangement primarily for the provision of AWS cloud services, which includes the use and performance of AWS chips, and (ii) a joint collaboration agreement pursuant to which certain services using OpenAI models will be made available to the Company and on AWS.

We also invested $ 15.0 billion in Series C Preferred Stock of OpenAI and entered into an equity commitment letter agreement (the “Letter Agreement”), pursuant to which we agreed to purchase additional shares of Series C Preferred Stock (the “Commitment Shares”) with an aggregate purchase price of $ 35.0 billion (the “Commitment Amount”).

In Q2 2026, we invested $ 13.7 billion of the Commitment Amount in Series C Preferred Stock.

We account for our $ 28.7 billion investment in Series C Preferred Stock recorded on our consolidated balance sheet as of June 30, 2026, and the remaining Commitment Amount as a component of our equity investments in private companies not accounted for under the equity-method, with future adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “Other income (expense), net” on our consolidated statements of operations.

In the event OpenAI consummates an IPO or other liquidity event, then-outstanding Series C Preferred Stock would be converted to common stock.

We expect to be subject to a customary lock-up period following an IPO and thereafter will remain subject to applicable securities laws restrictions.

Subsequent to June 30, 2026, we invested the remaining $ 21.3 billion Commitment Amount in shares of Series C Preferred Stock of OpenAI.

As of December 31, 2025 and June 30, 2026, equity investments in private companies not accounted for under the equity-method, which primarily relate to nonvoting preferred stock in Anthropic and preferred stock in OpenAI, had a carrying value of $ 16.2 billion and $ 122.3 billion, with adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “Other income (expense), net” on our consolidated statements of operations.

As of December 31, 2025 and June 30, 2026, equity investments accounted for under the equity-method of accounting, including investments for which we have elected the fair value option, had a carrying value of $ 659 million and $ 395 million.

We hold equity warrants giving us the right to acquire stock of other companies.

As of December 31, 2025 and March 31, 2026, these warrants had a fair value of $ 2.7 billion and $ 2.4 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations.

As of December 31, 2025 and June 30, 2026, these warrants had a fair value of $ 2.7 billion and $ 4.3 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations.

These warrants are classified as Level 2 and 3 assets.

These non-marketable investments are included within “Other assets” on our consolidated balance sheets.

Certain of our investments, including our investments in Anthropic and OpenAI, represent a variable interest in an entity for which we do not consolidate because we are not the primary beneficiary.

Certain of our investments, including our investments in Anthropic and OpenAI, represent a variable interest in entities that we do not consolidate because we are not the primary beneficiary.

Our maximum exposure to loss is generally limited to the current carrying values of these investments and any future funding commitments.

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The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions):

December 31, 2025 March 31, 2026

December 31, 2025 June 30, 2026

Cash and cash equivalents $ 86,810 $ 78,213

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We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, and physical store facilities as well as server and networking equipment, aircraft, and vehicles.

Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “ Property and equipment, net ” and were $ 55.6 billion and $ 56.4 billion as of December 31, 2025 and March 31, 2026.

Accumulated amortization associated with finance leases was $ 40.4 billion as of December 31, 2025 and March 31, 2026.

Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “ Property and equipment, net ” and were $ 55.6 billion as of December 31, 2025 and June 30, 2026.

Accumulated amortization associated with finance leases was $ 40.4 billion and $ 39.8 billion as of December 31, 2025 and June 30, 2026.

Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2026 2025 2026

Operating lease cost $ 3,426 $ 4,118 $ 6,666 $ 8,035

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Other information about lease amounts recognized in our consolidated financial statements is as follows:

December 31, 2025 March 31, 2026

December 31, 2025 June 30, 2026

Weighted-average remaining lease term – operating leases 10.0 years 10.0 years

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Total long-term lease liabilities $ 76,597 $ 10,742 $ 87,339

March 31, 2026

June 30, 2026

Operating Leases Finance Leases Total

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Note 4 — COMMITMENTS AND CONTINGENCIES

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of March 31, 2026 (in millions):

Nine Months Ended December 31, Year Ended December 31,

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of June 30, 2026 (in millions):

Six Months Ended December 31, Year Ended December 31,

2026 2027 2028 2029 2030 Thereafter Total

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(1) Includes non-cancellable financing obligations for fulfillment network and data center facilities.

Excluding interest, current financing obligations of $ 358 million and $ 340 million are recorded within “Accrued expenses and other” and $ 7.8 billion and $ 8.2 billion are recorded within “Other long-term liabilities” as of December 31, 2025 and March 31, 2026.

The weighted-average remaining term of the financing obligations was 15.0 years and the weighted-average imputed interest rate was 2.9 % and 3.1 % as of December 31, 2025 and March 31, 2026.

Excluding interest, current financing obligations of $ 358 million and $ 415 million are recorded within “Accrued expenses and other” and $ 7.8 billion and $ 8.9 billion are recorded within “Other long-term liabilities” as of December 31, 2025 and June 30, 2026.

The weighted-average remaining term of the financing obligations was 15.0 years and 14.9 years and the weighted-average imputed interest rate was 2.9 % and 3.2 % as of December 31, 2025 and June 30, 2026.

(2) Includes unconditional purchase obligations related to long-term agreements to procure energy, acquire and license digital media content, acquire property and equipment, and license software that are not reflected on the consolidated balance sheets.

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Legal Proceedings

In May 2018, Rensselaer Polytechnic Institute and CF Dynamic Advances LLC filed a complaint against Amazon.com, Inc.

in the United States District Court for the Northern District of New York.

The complaint alleged, among other things, that “Alexa Voice Software and Alexa enabled devices” infringe U.S.

The complaint sought an injunction, an unspecified amount of damages, enhanced damages , an ongoing royalty, interest, attorneys’ fees, and costs.

In March 2023, the plaintiffs alleged in their damages report that in the event of a finding of liability Amazon could be subject to $ 140 million to $ 267 million in damages.

In March 2024, the district court granted summary judgment ruling that the patent is invalid and dismissed the case.

In April 2024, the plaintiffs filed a notice of appeal.

In February 2026, the United States Court of Appeals for the Federal Circuit affirmed the district court’s judgment.

This decision is subject to appeal.

We dispute the allegations of wrongdoing and will continue to defend ourselves vigorously in this matter.

The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2025 Annual Report on Form 10-K and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the period ended March 31, 2026, as supplemented by the following:

Beginning in June 2019 with Wilcosky v.

Amazon.com, Inc., now pending in the United States District Court for the Northern District of Illinois (“N.D.

Ill.”), private litigants have filed a number of cases in U.S.

federal and state courts, including Hogan v.

Amazon.com, Inc.

Ill.), alleging, among other things, that Amazon’s collection, storage, use, retention, and protection of biometric identifiers violated the Illinois Biometric Information Privacy Act.

The complaints allege purported classes of Illinois residents who had biometric identifiers collected through Amazon products or services, including Amazon’s voice-based AI products and services, Amazon Photos, Alexa, AWS cloud services, Amazon Connect, Amazon’s virtual try-on technology, and Amazon’s Just Walk Out technology.

The complaints seek certification as class actions, unspecified amounts of damages, injunctive relief, attorneys’ fees, costs, and interest.

We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.

Since March 2020, private litigants, state Attorneys General, and the Federal Trade Commission have filed cases in the U.S., Canada, and the United Kingdom alleging, among other things:

price fixing arrangements between each of Amazon and its vendors and Amazon and its third-party sellers;

abuse of dominance, monopolization, and attempted monopolization;

and consumer protection and unjust enrichment claims, in violation of federal and state antitrust, state consumer protection, and Canadian and U.K.

antitrust laws.

The first of these complaints was Frame-Wilson v.

Amazon.com, Inc., which was filed in the United States District Court for the Western District of Washington (“W.D.

These complaints seek billions of dollars of alleged damages, treble damages, punitive damages, injunctive relief, structural relief, civil penalties, attorneys’ fees, and costs.

Some of the private plaintiff cases include allegations of distinct purported classes, including consumers who purchased a product through Amazon’s stores and consumers who purchased a product offered by Amazon through another e-commerce retailer.

Some of the cases include allegations that Amazon has a monopoly in markets for online superstores, marketplace services, or intermediation services and that we unlawfully engage in anticompetitive practices relating to our pricing policies, selection of the Featured Offers, use of seller data, advertising practices, the structure of Prime, and promotion of our own products on our website.

In the U.S., most of Amazon’s motions to dismiss were granted in part, but in each case, at least some of the claims survived.

In Canada, class certification was denied in a case before the Federal Court of Canada, finding that plaintiffs had not stated a viable claim, and plaintiffs’ appeal of that ruling is pending.

Three Canadian class actions before other courts are pre-certification.

In the United Kingdom, two class actions have been certified and a third is pre-certification.

In the U.S., one class action has been certified, and three others are pre-certification.

We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.

In June 2025, Xockets, Inc.

filed two complaints against Amazon.com, Inc.

and Amazon Web Services, Inc.

in the United States District Court for the Western District of Texas.

The complaints allege, among other things, that certain versions of the AWS Nitro System infringe U.S.

and 10,212,092.

The complaints seek an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief.

In May 2026, Xockets filed a complaint against Amazon.com, Inc., Amazon Web Services, Inc., Annapurna Labs (U.S.), Inc., NVIDIA Corporation, and Microsoft Corporation at the United States International Trade Commission alleging, among other things, that EC2 P6e-GB200 UltraServers, DGX Cloud with GB200 on AWS, SageMaker HyperPod, and EKS with P6e-GB200 UltraServers infringe U.S.

and 11,082,350 and seeking injunctive relief.

In June 2026, the International Trade Commission instituted an investigation.

We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.

In addition, we are regularly subject to claims, litigation, and other proceedings, including government inquiries and investigations that could lead to the foregoing and potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes, goods and services offered by us and by third parties, and other matters.

The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period.

We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that could affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and changes to our accruals and disclosures as appropriate.

accruals and disclosures as appropriate.

For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies.

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Note 5 — DEBT

As of March 31, 2026, we had $ 121.8 billion of unsecured senior notes outstanding (the “Notes”), including € 14.5 billion ($ 16.8 billion) and $ 37.0 billion issued in March 2026 for general corporate purposes.

As of June 30, 2026, we had $ 132.1 billion of unsecured senior notes outstanding (the “Notes”), including foreign currency-denominated Notes issued for general corporate purposes, the carrying values of which are subject to foreign exchange rate fluctuations.

Our total long-term debt obligations are as follows (in millions):

Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2025 March 31, 2026

Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2025 June 30, 2026

2014 Notes issuance of $ 6.0 billion

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2.59 % - 4.88 %

May 2026 Swiss franc-denominated Notes issuance of CHF 2.8 billion

2029 - 2051 0.84 % - 2.08 %

0.90 % - 2.10 %

June 2026 Canadian Dollar-denominated Notes issuance of C$ 14.0 billion

2029 - 2056 3.40 % - 5.00 %

3.46 % - 5.05 %

Other long-term debt 836 855

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___________________

(1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, December 2022, 2025, March 2026, and March 2026 Euro-denominated Notes were 14.1 , 15.2 , 17.9 , 12.9 , 13.5 , 4.2 , 15.4 , 16.7 , and 10.3 years as of March 31, 2026.

The combined weighted-average remaining life of the Notes was 14.2 years as of March 31, 2026.

(1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, December 2022, 2025, March 2026, March 2026 Euro-denominated, May 2026 Swiss franc-denominated, and June 2026 Canadian Dollar-denominated Notes were 13.9 , 14.9 , 17.6 , 15.6 , 13.3 , 3.9 , 15.1 , 16.4 , 10.1 , 8.9 , and 14.8 years as of June 30, 2026.

The combined weighted-average remaining life of the Notes was 14.2 years as of June 30, 2026.

(2) Includes $ 2.8 billion of floating rate Notes due in 2028 and 2029.

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Interest is calculated using Euro Interbank Offered Rate (“EURIBOR”) plus 0.35 %, payable quarterly in arrears.

Interest on the Notes is primarily payable semi-annually in arrears except for the March 2026 Euro-denominated Notes for which interest is primarily payable annually in arrears.

We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices.

Interest on the Notes is primarily payable semi-annually in arrears except for the fixed rate March 2026 Euro-denominated Notes and May 2026 Swiss franc-denominated Notes for which interest is primarily payable annually in arrears.

We may redeem the fixed rate Notes at any time in whole, or from time to time, in part at specified redemption prices, except for the May 2026 Swiss franc-denominated Notes, which we may redeem on or after the applicable par call dates in whole, but not in part.

The floating rate Notes are generally not redeemable prior to maturity.

We are not subject to any financial covenants under the Notes.

The estimated fair value of the Notes was approximately $ 61.1 billion and $ 113.6 billion as of December 31, 2025 and March 31, 2026, which is based on quoted prices for our debt as of those dates.

The estimated fair value of the Notes was approximately $ 61.1 billion and $ 123.8 billion as of December 31, 2025 and June 30, 2026, which is based on quoted prices for our debt as of those dates.

Subsequent to June 30, 2026, we issued $ 25.0 billion of U.S.

Dollar-denominated Notes for general corporate purposes with maturities between 2029 and 2066, including $ 750 million of floating rate Notes due in 2029 based on the compounded SOFR plus 0.58 %.

The fixed rate Notes have stated interest rates between 4.60 % and 6.25 %, and effective interest rates between 4.67 % and 6.33 %.

Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $ 30.0 billion (including up to € 3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed 397 days from the date of issue.

There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2025 and March 31, 2026.

There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2025 and June 30, 2026.

We use the net proceeds from the issuance of commercial paper for general corporate purposes.

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The interest rate applicable to outstanding balances under the Short-Term Credit Agreement is the SOFR specified in the Short-Term Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion.

There were no borrowings outstanding under the Credit Agreement and the Short-Term Credit Agreement as of December 31, 2025 and March 31, 2026.

There were no borrowings outstanding under the Credit Agreement and the Short-Term Credit Agreement as of December 31, 2025 and June 30, 2026.

In June 2026, we entered into a $ 17.5 billion unsecured delayed draw term loan with a syndicate of lenders (“Term Loan”), which matures three years from the date of borrowing and bears interest at the SOFR specified in the Term Loan plus a margin ranging from 0.625 % to 0.875 % based on our credit ratings.

We may draw up to $ 17.5 billion in a single draw on any business day on or prior to September 30, 2026, after which any undrawn commitments will automatically terminate.

Amounts borrowed and repaid may not be reborrowed.

There were no borrowings outstanding under the Term Loan as of June 30, 2026.

We also utilize other short-term credit facilities for working capital purposes.

There were $ 455 million and $ 152 million of borrowings outstanding under these facilities as of December 31, 2025 and March 31, 2026, which were included in “Accrued expenses and other” on our consolidated balance sheets.

In addition, we had $ 9.4 billion of unused letters of credit as of March 31, 2026.

There were $ 455 million and $ 325 million of borrowings outstanding under these facilities as of December 31, 2025 and June 30, 2026, which were included in “Accrued expenses and other” on our consolidated balance sheets.

Standby letters of credit are guarantees issued by financial institutions on our behalf, which can only be drawn in the event we fail to perform under the underlying obligation, and do not reduce the amount of borrowings available under our credit facilities.

As of June 30, 2026, our total standby letter of credit facilities assigned to specific beneficiaries was $ 13.4 billion, primarily related to our payment-related services, and workers’ compensation and insurance programs.

Note 6 — STOCKHOLDERS’ EQUITY

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In March 2022, the Board of Directors authorized a program to repurchase up to $ 10.0 billion of our common stock, with no fixed expiration.

There were no repurchases of our common stock during the three months ended March 31, 2025 or 2026.

As of March 31, 2026, we have $ 6.1 billion remaining under the repurchase program.

There were no repurchases of our common stock during the six months ended June 30, 2025 or 2026.

As of June 30, 2026, we have $ 6.1 billion remaining under the repurchase program.

Stock Award Plans

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Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 11.0 billion and 10.9 billion as of December 31, 2025 and March 31, 2026.

Common shares outstanding plus shares underlying outstanding stock awards totaled 11.0 billion as of December 31, 2025 and June 30, 2026.

These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited.

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Cost of sales $ 250 $ 208 $ 398 $ 379

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Total stock-based compensation expense $ 6,534 $ 6,038 $ 10,223 $ 10,070

The following table summarizes our restricted stock unit activity for the three months ended March 31, 2026 (in millions):

The following table summarizes our restricted stock unit activity for the six months ended June 30, 2026 (in millions):

Number of Units Weighted-Average

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Units forfeited ( 24.5 ) 181

Outstanding as of March 31, 2026 195.1 183

Scheduled vesting for outstanding restricted stock units as of March 31, 2026, is as follows (in millions):

Nine Months Ended December 31, Year Ended December 31,

Outstanding as of June 30, 2026 244.4 197

Scheduled vesting for outstanding restricted stock units as of June 30, 2026, is as follows (in millions):

Six Months Ended December 31, Year Ended December 31,

2026 2027 2028 2029 2030 Thereafter Total

Scheduled vesting — restricted stock units 53.2 100.3 61.8 22.2 4.8 2.1 244.4

As of March 31, 2026, there was $ 14.4 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.

As of June 30, 2026, there was $ 24.8 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.

This compensation is recognized on an accelerated basis with more than half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of one year .

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Total beginning stockholders’ equity $ 305,867 $ 441,914 $ 285,970 $ 411,065

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Total beginning accumulated other comprehensive income (loss), net of tax of $( 1,029 ), $( 8,573 ), $( 1,762 ), and $( 9,384 )

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Beginning balance, net of tax of $( 1,256 ), $( 8,679 ), $( 2,054 ), and $( 9,481 )

3,722 27,659 6,139 30,170

Change in net unrealized gains (losses), net of tax of $( 12 ), $( 13,695 ), $( 23 ), and $( 14,035 )

40 41,988 77 42,814

Reclassification adjustments for net losses (gains) included in “Other income (expense), net,” net of tax of $ 5 , $ 0 , $ 814 , and $ 1,142

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Ending balance, net of tax of $( 1,263 ), $( 22,374 ), $( 1,263 ), and $( 22,374 )

3,745 69,647 3,745 69,647

Beginning balance, net of tax of $ 1 , $( 3 ), $ 0 , and $( 1 )

Other, net of tax of $( 1 ), $ 1 , $ 0 , and $( 1 )

( 3 ) 1 ( 1 ) ( 1 )

Ending balance, net of tax of $ 0 , $( 2 ), $ 0 , and $( 2 )

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Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, developments in tax controversies, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax benefits are not recognized.

Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss.

Our effective tax rate can be more or less volatile based on the amount of pre-tax income or

For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower.

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federal research and development credit.

Our income tax provision for the three months ended March 31, 2025 was $ 4.6 billion, which included $ 559 million of net discrete tax expense.

Our income tax provision for the three months ended March 31, 2026 was $ 9.6 billion, which included $ 4.1 billion of net discrete tax expense primarily attributable to the net gains from our investments in Anthropic.

Our income tax provision for the six months ended June 30, 2025 was $ 7.2 billion, which included $ 753 million of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation.

Our income tax provision for the six months ended June 30, 2026 was $ 27.8 billion, which included $ 15.9 billion of net discrete tax expense primarily attributable to the upward adjustments to our investments in Anthropic.

On February 18, 2026, the IRS issued Notice 2026-7 (the “2026 Notice”), which included guidance on the U.S.

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We expect the 2026 Notice, which applied retroactively to 2025, to result in a significant decrease of 2024 and 2025 cash taxes paid.

Cash paid for income taxes, net of refunds was $ 877 million and $ 1.3 billion in Q1 2025 and Q1 2026.

As of December 31, 2025 and March 31, 2026, income tax contingencies were approximately $ 6.6 billion and $ 6.7 billion.

Cash paid for income taxes, net of refunds was $ 4.8 billion and $ 2.7 billion in Q2 2025 and Q2 2026, and $ 5.6 billion and $ 4.0 billion for the six months ended June 30, 2025 and 2026.

As of December 31, 2025 and June 30, 2026, income tax contingencies were approximately $ 6.6 billion and $ 7.1 billion.

Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies.

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

North America

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

Online stores (1) $ 61,485 $ 70,432 $ 118,892 $ 134,686

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Total segment assets reconciled to consolidated amounts are as follows (in millions):

December 31, 2025 March 31, 2026

December 31, 2025 June 30, 2026

North America (1) $ 235,652 $ 249,006

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Property and equipment, net by segment is as follows (in millions):

December 31, 2025 March 31, 2026

December 31, 2025 June 30, 2026

North America $ 122,043 $ 135,013

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

North America (1) $ 11,272 $ 12,139 $ 16,368 $ 23,265

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___________________

(1) Includes property and equipment added under finance leases of $ 54 million and $ 237 million in Q1 2025 and Q1 2026.

(2) Includes property and equipment added under finance leases of $ 0 million and $ 1.3 billion in Q1 2025 and Q1 2026.

(1) Includes property and equipment added under finance leases of $ 21 million and $ 235 million in Q2 2025 and Q2 2026, and $ 75 million and $ 472 million for the six months ended June 30, 2025 and 2026.

(2) Includes property and equipment added under finance leases of $ 916 million and $ 328 million in Q2 2025 and Q2 2026, and $ 916 million and $ 1.7 billion for the six months ended June 30, 2025 and 2026.

Depreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on usage.

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Three Months Ended

June 30, Six Months Ended

2025 2026 2025 2026

North America $ 3,742 $ 4,500 $ 7,272 $ 8,780

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements