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Apple and Amazon Exceed Revenue Expectations in Second Quarter

Apple and Amazon both reported second-quarter revenues that surpassed Wall Street predictions, despite broader investor concerns regarding AI spending in the tech sector.

  • Apple's quarterly revenue reached $109.4bn, exceeding expectations of $108.65bn.
  • Amazon reported revenue of $200.6bn, compared to analyst predictions of $196.47bn.
  • Amazon's stock rose over 8% in after-hours trading following its earnings report.

Apple and Amazon have both announced second-quarter earnings that surpassed analyst expectations. The reports were released on Thursday, July 30, 2026, amidst growing investor scrutiny over significant AI infrastructure spending by other major technology companies.

Apple reported quarterly revenue of $109.4bn, exceeding Wall Street's forecast of $108.65bn. The company also posted $2.02 earnings per share, primarily driven by sales of its key products, including iPhones and laptops. Apple's stock saw a slight dip on Thursday after its services division revenue fell below market expectations.

Amazon's revenue reached $200.6bn, outperforming analyst predictions of $196.47bn. The company also saw growth in its AWS cloud computing service and beat market expectations for advertising revenue, although its free cash flow declined. Following the announcement, Amazon's stock increased by more than 8% in immediate after-hours trading.

The earnings reports come during a challenging period for some tech firms, with shares in companies like Tesla and Meta experiencing declines after revealing substantial AI spending in their recent earnings. Apple has been viewed by investors as a safe haven amidst this AI-driven market volatility, with its stock up approximately 23% this year, leading the 'Magnificent Seven' tech stocks.

Thursday's earnings call marked Tim Cook's final report as Apple's CEO, a position he has held for 15 years. Cook will be succeeded by John Ternus, a long-serving hardware engineering executive. Under Cook's leadership, Apple's market value grew from around $350bn in 2011 to surpass $5tn just days before this earnings call.

Why this matters: The performance of these tech giants provides insight into investor confidence amidst concerns about AI spending and broader market volatility.

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