Amazon reported earnings for its second fiscal quarter of 2016 today and for its AWS unit, it was once again a big quarter. AWS net sales hit $2.9 billion in the last quarter, up from $2.5 billion in net sales in the last quarter. That’s up from $1.8 billion in the year-ago-quarter.
It’s worth noting that that’s a slightly slower quarter-to-quarter growth rate than in the last quarter, though. While Q1 net sales were up 64 percent year-over-year, they were “only” up 58 percent from Q1 to Q2.
Operating income for AWS in the Q1 quarter was $604 million and accounted for more than half of all of Amazon’s operating income. This quarter, operating income was $718 million. Just like in the last quarter, that’s higher than Amazon’s operating income from its other operations in North America ($702 million) and internationally (where it lost $135 million).
Unlike Amazon’s other business units, AWS operates with very high margins. In Q1, AWS was running with an operating margin of 27.9 percent, compared to an even better 29.9 percent in Q2. This rate has increased steadily over the last couple of quarters.