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Amazon posted strong financial results for its second quarter ended June 30, with net sales increasing 11 per cent to $134.4 billion and net income at $6.7 billion, compared with a net loss of $2 billion in the year-ago quarter.

Its Cloud arm AWS segment sales increased 12 per cent year-over-year to $22.1 billion.

AWS segment’s operating income was $5.4 billion, compared with operating income of $5.7 billion in the second quarter of 2022.

“It was another strong quarter of progress for Amazon. Our AWS growth stabilised as customers started shifting from cost optimisation to new workload deployment, and AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases,” said Andy Jassy, Amazon CEO.

The operating income was $7.7 billion, exceeding the top end of Amazon's guidance ranges.

“AWS remains the clear cloud infrastructure leader with a significant leadership position with respect to number of customers, size of partner ecosystem, breadth of functionality, and the strongest operational performance,” said Jassy.

“We've seen AWS' revenue growth rate stabilise during Q2 where we reported 12 per cent year-over-year growth,” he added.

Today, more than 50,000 customers use AWS' Graviton chips and AWS Compute instances, including 98 of the top 100 Amazon EC2 customers, and these chips have about 40 per cent better price performance than other leading x86 processors.

Brian Olsavsky, Chief Financial Officer at Amazon, said that during the quarter, they also saw improvements in macroeconomic indicators across North America and international segments but continue to see customers trading down and seeking value in their purchases.

“Delivery speed has been a key area of focus over the last several quarters and we reached record levels during Q2. Prime members love the faster ship speeds and are shopping more often. Advertising revenue remained strong, up 22 per cent year over year,” he informed.