Amazon Reports Booming AWS Revenue but Misses Overall Earnings Expectations
Amazon’s Q3 net sales rose 12% to $201.9 billion, slightly below analysts’ $202.2 billion forecast.
In Brief
- •Amazon’s Q3 net sales rose 12% to $201.9 billion, slightly below analysts’ $202.2 billion forecast.
- •Diluted earnings per share were $1.89 versus the expected $1.97.
- •AWS revenue reached $45.98 billion, beating the $45.29 billion expectation and up 39% YoY.
- •Free cash flow fell to a negative $42.4 billion, compared with a positive $14.8 billion in the prior year.
- •Amazon reiterated a 2026 capex target of about $220 billion, nearly matching its projected Q4 sales of $240‑$247 billion.
Why It Matters
Amazon’s earnings miss signals that its massive AI investment is driving cash burn, raising concerns among investors about short‑term liquidity. The strong performance of AWS, however, underscores the continued importance of cloud services to Amazon’s revenue mix and suggests that the company’s core business remains resilient even as it pursues aggressive growth in AI and other high‑capex initiatives.
Key Details
- Net sales
- $201.9 billion
- Diluted EPS
- $1.89
- AWS revenue
- $45.98 billion
- Free cash flow
- -$42.4 billion
- 2026 capex
- $220 billion
- Q4 sales forecast
- $240‑$247 billion
Context & Background
Amazon’s fiscal year 2026 was marked by significant investment in artificial intelligence, driving capital expenditures and cash burn, while its cloud unit continued to grow strongly.
Original Reporting & Sources
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