Amazon stock tests investor patience after Q3 cloud surge

Published on 10/30/2026 at 16:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Amazon stock faces a new test after third-quarter results showed stronger AWS growth but heavier artificial intelligence spending. The holiday-quarter outlook now sets the next focus.

Amazon balances cloud growth and spending

AWS growth accelerated while the company expanded artificial intelligence infrastructure.
Amazon set a broad fourth-quarter sales outlook for the holiday period.
Heavy capital investment pushed trailing twelve-month free cash flow into an outflow.

Amazon.com Inc., US0231351067, Illustration mit AI erstellt.

Amazon.com reported third-quarter results on Thursday, October 29, for the period ended September 30. In its earnings release, the company said net sales rose to 201.944 billion US dollars, while operating income climbed to 28.076 billion US dollars.

Amazon stock traded at 215.13 euros on Lang & Schwarz at 16:07 CET on Friday, October 30, 5.08 percent below the Xetra close of Thursday, October 29, according to Yahoo Finance. The real-time quote of Amazon stock reflects the latest Lang & Schwarz indication.

AWS accelerates as investment rises

AWS sales increased 39 percent year over year to 45.984 billion US dollars, lifting the cloud unit's operating income to 17.773 billion US dollars. Amazon said AWS reached a 184 billion US dollar annualized revenue run rate, while management expects growth above 40 percent in both 2027 and 2028.

Consolidated operating margin reached 13.9 percent, the company's highest level. Net income nevertheless fell to 20.685 billion US dollars, or 1.89 US dollars per diluted share, from 21.187 billion US dollars a year earlier. Amazon attributed the decline primarily to investment gains recorded in the prior-year quarter.

Holiday quarter outlook stays cautious

Amazon guided for fourth-quarter net sales of 240.0 billion to 247.0 billion US dollars and operating income of 28.5 billion to 33.5 billion US dollars. The company also continues to expect 2026 cash capital expenditures of approximately 220 billion US dollars, mainly reflecting artificial intelligence and data-center investment.

That spending is already visible in cash generation. Trailing twelve-month operating cash flow rose to 168.3 billion US dollars, but free cash flow turned into an outflow of 42.357 billion US dollars as purchases of property and equipment increased sharply.