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Amazon shares rally after Q2 2026 earnings, as CapEx weighs on cash flow
The stock closed July 31 up 15.3% to $271.58 after earnings, while free cash flow in Q2 2026 fell to negative $7.6 billion amid higher planned 2026 capital expenditures.
Amazon shares jumped after the company reported Q2 2026 results on July 30, closing the July 31 session up 15.3% at $271.58. Yahoo Finance reports the stock was up 17.7% year to date as of August 1, while the SPDR S&P 500 index was up about 9.6% over the same period.
Morgan Stanley reiterated an overweight rating and raised its price target to $335 from $330, according to the Yahoo Finance article. The note cited Amazon revenue of $200.6 billion, up 20% year over year, and net income that rose 244% year over year to $62.6 billion.
The article also highlights a key offset: Q2 2026 net income included $53.4 billion of non operating pre tax other income, largely tied to Amazon's investment in Anthropic. Yahoo Finance notes the company said it expects to spend about $220 billion in cash CapEx in 2026, with higher memory costs, and that this spending is already pressuring free cash flow.
Free cash flow was negative $7.6 billion in Q2 2026, compared with positive $1.2 billion in Q1 and $18.2 billion in Q2 2025, the article says. It also points to additional capital deployed toward OpenAI and notes that final tranche timing was described by the Financial Times as occurring in the last week of July.
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