Amazon (AMZN -0.15%) may be best known as an e-commerce company, but the largest segment of its business is Amazon Web Services (AWS), primarily due to its impressive operating profit margin. During Amazon’s second quarter (Q2) of 2026, AWS’s operating profits rose at a jaw-dropping 64% pace, resulting in an incredible 39% operating margin.
That’s a huge deal for Amazon’s financial picture, and I think it’s the single best reason to buy the stock, as it allows a smaller revenue segment to shine.
Image source: The Motley Fool.
AWS is the most important part of Amazon
Amazon’s business is broken up into three parts: North American commerce, International commerce, and AWS. In Q2, these business units accounted for 58%, 21%, and 21% of sales, respectively. Despite North American and International commerce making up 79% of total sales, they only account for about 40% of operating profits. AWS accounts for 60% despite being a much smaller portion of sales.
Why is that the case?
It’s…
https://www.fool.com/investing/2026/09/08/amazons-39-aws-operating-margin-the-single-best-re/
