Financial Trends -- 6/10

Revenue accelerating (+8.6% to +16.6% YoY), operating margin expanding +590bps over 5 years to 11.2% (Q1'26 record 13.1%), AWS re-accelerating to +28%. But AI capex supercycle has driven TTM FCF negative (-$2.5B) -- quarterly capex hit $44.2B in Q1'26. Negative FCF triggers -2 penalty and caps score at 6 regardless of revenue strength. Weight: 25%
Q1'26 Revenue
+16.6% YoY | Accelerating
Q1'26 Op Margin
13.1%
Record | +130bps YoY
Q1'26 Op Income
+29.6% YoY | Record
TTM FCF
-$2.5B
Q1'26 capex $44.2B | Negative
Quarterly P&L (Q1 2024 -- Q1 2026)
Quarter Net Sales ($M) YoY Op Margin Op Income ($M) Diluted EPS FCF ($M) Capex ($M)
Q1 2024 $143,313 10.7% $15,307 $0.98 $4,064 $14,925
Q2 2024 $147,977 9.9% $14,672 $1.26 $7,661 $17,620
Q3 2024 $158,877 11.0% $17,411 $1.43 $3,351 $22,620
Q4 2024 $187,792 11.3% $21,203 $1.86 $17,802 $27,834
Q1 2025 $155,667 +8.6% 11.8% $18,405 $1.59 -$8,004 $25,019
Q2 2025 $167,702 +13.3% 11.4% $19,171 $1.68 $332 $32,183
Q3 2025 $180,169 +13.4% 9.7% $17,422 $1.95 $430 $35,095
Q4 2025 $213,386 +13.6% 11.7% $24,977 $1.95 $14,937 $39,522
Q1 2026 $181,519 +16.6% 13.1% $23,852 $2.78 -$18,171 $44,203
Source: Daloopa. All figures linked to source records.

Key Trends
  • Revenue accelerating every quarter: +8.6% → +13.3% → +13.4% → +13.6% → +16.6%
  • AWS the engine: +16.9% → +28.4% YoY (15-quarter high). $37.6B quarterly revenue, 37.7% op margin.
  • Advertising durable at ~+24% YoY ($17.2B Q1'26)
  • Operating margin expanded +590bps over 5 years (5.3% FY21 → 11.2% FY25), Q1'26 record 13.1%
  • FCF turned negative on TTM basis (-$2.5B) as capex doubled. Quarterly capex $44.2B vs $25B a year ago.

Segment Revenue (Q1 2026)
Segment Revenue ($M) % of Total YoY Growth
North America $104,143 57% +12.1%
International $39,789 22% +18.7%
AWS $37,587 21% +28.4%
Source: Daloopa

5-Year Annual Summary (FY2021 -- FY2025)
Metric FY2021 FY2022 FY2023 FY2024 FY2025
Revenue ($M) $469,822 $513,983 $574,785 $637,959 $716,924
YoY Growth +9.4% +11.8% +11.0% +12.4%
Op Margin 5.3% 2.4% 6.4% 10.8% 11.2%
Op Income ($M) $24,879 $12,248 $36,852 $68,593 $79,975
Diluted EPS $3.24 -$0.27 $2.90 $5.53 $7.17
FCF ($M) -$14,726 -$16,893 $32,217 $32,878 $7,695
OCF ($M) $46,327 $46,752 $84,946 $115,877 $139,514
Source: Daloopa. FYE December 31.

Score Rationale

Negative FCF on TTM basis triggers -2 penalty. Score capped at 6.

Operating cash flow is still rising ($149B TTM) -- the FCF compression is capex-driven (AI/data center buildout), not operational deterioration. Revenue is accelerating (+16.6%), operating margins hit a record (13.1%), and AWS re-accelerated to +28%. Under normal circumstances this would score 8/10. But with quarterly capex at $44.2B and TTM FCF at -$2.5B, the negative FCF penalty applies mechanically.

Score: 6/10 -- Exceptional revenue and margin trajectory, capped by negative TTM free cash flow from the largest capex cycle in corporate history.


Data sourced from Daloopa, company filings. FYE December 31.