Amazon Q1 results top estimates as cloud demand rides AI wave higher

Investing.com -- Amazon reported Tuesday first-quarter results that topped Wall Street estimates as better-than-expected performance in its cloud business underscored renewed cloud demand from the artificial-intelligence boom.

Amazon.com Inc (NASDAQ: AMZN) rose more than 3% in afterhours trading following the report.

Amazon reported Q2 EPS of $0.98 on revenue of $143.31 billion, beating estimates of $0.84 on revenue of $142.65B.

Amazon Web Services, its cloud revenue segment, grew 17% to $25B, topping consensus estimates of $14.7% growth, with the division's annual revenue run rate now at a $100B.

"The combination of companies renewing their infrastructure modernization efforts and the appeal of AWS’s AI capabilities is reaccelerating AWS’s growth rate," the company said Tuesday.

North America segment sales increased 12% year-over-year to $86.3B.

Looking ahead, the company guided Q2 revenue slightly below than analyst expectations.

For the second quarter, the company expects revenue of $144B to $149B, compared with Wall Street estimates of $150.2B. Operating income for Q2 was guided in a range of $10B to $14B.

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