Amazon gloomy earnings forecast overshadows better-than-expected results

• Amazon reported second-quarter results after the bell that exceeded expectations.
• The company offered profit guidance for the current quarter that was lighter than Wall Street's forecast.

Amazon shares slid more than 3% in extended trading on Thursday after the company reported second-quarter results that exceeded expectations, but it gave light operating income guidance for the current period.

Here's how the company did, compared with estimates from analysts polled by LSEG:

• Earnings per share: $1.68 vs. $1.33 estimated
• Revenue: $167.7 billion vs. $162.09 billion estimated

Wall Street is also looking at other key revenue numbers:

• Amazon Web Services: $30.87 billion vs. $30.8 billion estimated, according to StreetAccount
• Advertising: $15.7 billion vs. $14.9 billion estimated, according to StreetAccount

Amazon's second-quarter sales grew 13% year over year to $167.7 billion, an acceleration from a year ago, when revenue expanded 10%.

For the current quarter, Amazon said it expects operating income to land between $15.5 billion and $20.5 billion. Analysts were looking for $19.48 billion, according to StreetAccount.

The guidance spooked investors who are eager to see Amazon's hefty investments in artificial intelligence pay off. The company has committed to spend up to $100 billion this year on AI as it races to build out infrastructure and software.

“Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I'm excited for what lies ahead,” Amazon CEO Andy Jassy said in the earnings release.

Revenue in the third quarter is forecast to be $174 billion to $179.5 billion, representing growth of 10% to 13% year over year. Analysts surveyed by StreetAccount forecast $173.1 billion in revenue.

For the second quarter in a row, Amazon included “tariff and trade policies” as factors that could affect its guidance. President Donald Trump's shifting trade policies stand to impact its core retail business the most, though consumer spending has proven to be more resilient than analysts feared.

Sales in Amazon's online stores unit grew 11% year over year to $61.5 billion during the quarter, topping Wall Street's projected $59 billion.