Amazon Generated $202 Billion in Quarterly Sales. Most of Its Operating Profit Came From Just 1 Business.

Amazon's AWS cloud business comprises only 23% of revenue but generates 63% of operating profit, demonstrating the segment's critical importance. While AWS benefits from strong economies of scale with a 38% operating margin compared to e-commerce's 8%, Amazon's massive $220 billion capital expenditure in 2026 raises concerns about near-term profitability. However, Amazon's P/E multiple of 21.6—well below its three-year average of 39.3—could signal either a historic buying opportunity or a warning sign for long-term investors betting on AWS's future growth.