Amazon.com Inc. stock gets AWS boost as Q4 outlook sets next test

Amazon.com Inc. reported its third-quarter results on Thursday, October 29, 2026, with AWS growth accelerating while heavy artificial intelligence investment continued to weigh on cash generation. The company's SEC-filed earnings release said quarterly net sales rose 12 percent year over year to 201.9 billion US dollars.

Operating income climbed to 28.1 billion US dollars from 17.4 billion US dollars a year earlier, lifting the operating margin to 13.9 percent, Amazon's highest level to date. Net income declined to 20.7 billion US dollars, or 1.89 US dollars per diluted share, from 21.2 billion US dollars, or 1.95 US dollars per share, in the year-ago quarter. Amazon attributed the decline primarily to 9.5 billion US dollars of pre-tax gains from Anthropic investments in the prior-year period.

AWS Growth Meets AI Investment

Amazon Web Services remained the central growth engine. AWS sales increased 39.3 percent to 46.0 billion US dollars, producing a 184.0 billion US dollar annualized revenue run rate. AWS operating income rose to 17.8 billion US dollars from 11.4 billion US dollars, while the segment operating margin reached 38.7 percent.

Chief Executive Andy Jassy said the investment in AWS functionality and infrastructure was working and projected AWS revenue growth above 40 percent in both 2027 and 2028. The comments reinforce the strategic opportunity in cloud and AI services, but they also raise the financial burden of building capacity ahead of demand.

Cash Flow Remains The Main Risk

Operating cash flow for the trailing twelve months increased 29 percent to 168.3 billion US dollars. Free cash flow, however, swung to an outflow of 42.4 billion US dollars from an inflow of 14.8 billion US dollars a year earlier. Amazon said the change was driven primarily by a 94.8 billion US dollar increase in purchases of property and equipment, net of proceeds and incentives, reflecting AI investment.

The company continues to expect cash capital expenditures of about 220.0 billion US dollars for 2026. Jassy also said spending is expected to rise meaningfully in 2027, making execution, customer demand and the eventual return on infrastructure investment important issues for shareholders.

Holiday Quarter Sets Next Focus

Amazon guided for fourth-quarter net sales of 240.0 billion to 247.0 billion US dollars, representing year-over-year growth of 12 to 16 percent. The company expects fourth-quarter operating income of 28.5 billion to 33.5 billion US dollars and said advertising revenue growth should return to the high teens after timing effects related largely to Prime Day.

Amazon.com Inc. stock traded at 216.78 euros on Lang & Schwarz at 10:42 CET on Monday, November 2, 2026. Investors can follow the real-time quote of Amazon.com Inc. stock.

US equity investors can follow the S&P 500 as a broad market benchmark while Amazon executes its cloud and AI investment plan.

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