The news: Amazon reported strong Q2 growth, although YoY comparisons were boosted by Prime Day moving into June from the third quarter last year.

By the numbers:

• Net sales increased 20% YoY to $200.6 billion, ahead of expectations for 18% growth.
• North America revenues rose 16%, beating estimates for 13.9% growth.
• Ad revenues of $19.8 billion topped forecasts for $19.43 billion.

Looking ahead, Amazon forecast net sales growth of 9% to 12% for the current Q3. While that was below analyst expectations, the company noted that growth would be 400 basis points higher excluding the Prime Day timing shift in 2025 and 2026. Operating income is expected to reach $22.5 billion to $26.5 billion, up from $17.4 billion in the year-ago period.

How we got here: Amazon’s Q2 was buoyed by its tentpole sales event, which we estimate generated $15.68 billion in sales for the retailer, a 7.1% increase YoY. The performance also reflected the broader strength of Amazon’s ecommerce business, which continues to grow at a steady pace even as Walmart and other competitors race to expand their share of the pie, and its advertising business, which remains one of its fastest-growing segments.