Amazon Q3 2026 Results: Revenue Rises 12% to $201.9 Billion as AWS Growth Accelerates

October 30, 2026

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Amazon.com (NASDAQ: AMZN) reported a 12% year-on-year increase in net sales to $201.9 billion for the third quarter of 2026, driven by strong growth in its cloud computing business, Amazon Web Services (AWS).

For the quarter ended September 30, 2026, Amazon’s revenue increased from $180.2 billion in the same period last year. Excluding the impact of foreign exchange movements, net sales grew 13%.

AWS was the biggest growth driver, with revenue increasing 39% to $46 billion. The company said this was its fastest AWS revenue growth in nearly five years, bringing the business to an annualised revenue run rate of $184 billion.

Amazon also reported significant improvement in operating income, which increased to $28.1 billion from $17.4 billion in Q3 2025. Its operating margin reached 13.9%, the highest in the company’s history.

However, net income declined slightly to $20.7 billion from $21.2 billion a year earlier. Diluted earnings per share (EPS) fell to $1.89 from $1.95.

Amazon said the decline in net income was primarily due to $9.5 billion in investment-related gains from Anthropic recorded in the third quarter of 2025.

Source: Amazon Official Third Quarter Results

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AWS Leads Amazon’s Revenue Growth

Amazon’s three main business segments reported higher sales during the quarter.

North America sales increased 6% to $112.9 billion, while International sales grew 5% to $43.1 billion. Excluding foreign exchange movements, International sales increased 8%.

AWS continued to lead growth, generating $46 billion in revenue, up 39% year-on-year.

AWS operating income also increased significantly to $17.8 billion from $11.4 billion in the year-ago quarter. North America’s operating income rose to $8.7 billion from $4.8 billion, while International operating income increased to $1.6 billion from $1.2 billion.

Amazon CEO Andy Jassy said the company’s investments in AWS infrastructure and services are delivering strong results. He added that AWS revenue growth could exceed 40% in both 2027 and 2028.

Jassy also highlighted progress across Amazon’s retail operations and newer businesses, including Grocery, Pharmacy, Amazon Leo and Zoox.

Amazon Advertising Revenue Increases 11%

Amazon’s advertising business generated $19.6 billion in revenue in Q3 2026, an 11% increase compared with $17.7 billion in the same quarter last year.

Advertising revenue growth was 12% after excluding foreign exchange movements, compared with 22% growth in Q3 2025.

Amazon said changes in Prime Day timing and other factors affected the advertising business’s year-on-year growth rate. The company expects advertising revenue to grow at a high-teens rate in Q4 2026.

Other business segments also reported growth:

Subscription services: Revenue increased 11% to $14 billion.
Third-party seller services: Revenue grew 9% to $46.5 billion.
Online stores: Sales increased 2% to $68.5 billion.
Physical stores: Sales rose 2% to $5.7 billion.

Amazon’s advertising services include sponsored ads, display advertising and video advertising offered to sellers, vendors, publishers and other customers.

AI Investments Put Pressure on Amazon’s Free Cash Flow

Amazon’s operating cash flow increased 29% to $168.3 billion for the trailing 12 months ended September 30, 2026, compared with $130.7 billion a year earlier.

However, free cash flow turned negative, recording an outflow of $42.4 billion compared with a positive inflow of $14.8 billion in the previous year.

The decline was mainly driven by higher spending on property, equipment and artificial intelligence infrastructure.

Amazon’s net purchases of property and equipment, after deducting proceeds from sales and incentives, increased 82% to $210.7 billion over the trailing 12 months.

The company continues to expect total capital expenditure of approximately $220 billion for the full year 2026, reflecting its significant investment in AI infrastructure and other business operations.

Amazon Q4 2026 Revenue Forecast

Amazon expects strong revenue growth to continue in the fourth quarter of 2026.

The company provided the following financial outlook:

Net sales: Between $240 billion and $247 billion, representing year-on-year growth of 12% to 16%.
Operating income: Between $28.5 billion and $33.5 billion, compared with $25 billion in Q4 2025.
Advertising revenue: Expected to grow at a high-teens rate year-on-year.
Capital expenditure: Approximately $220 billion for the full year 2026.

Amazon noted that its financial outlook could be affected by foreign exchange rates, energy prices, inflation, interest rates, global economic conditions, trade policies and customer spending.