Business · Companies · 2 hrs ago
AWS revenue jumps 39% as Amazon misses earnings estimates
Amazon’s AWS cloud unit grew 39% in the third quarter, its fastest growth in nearly five years.
AWS brought in about $46 billion, beating analysts’ estimates, and its operating income rose 55%.
The growth came as Amazon missed overall earnings and sales estimates for the quarter ended Sept.
30.
The Seattle-based company reported earnings of $1.89 per share, below the $1.97 analysts expected, while sales were $201.94 billion, slightly short of estimates.
Investors are weighing Amazon’s heavy AI spending as major cloud companies build data centers and buy computing equipment to meet demand.
Amazon expects to spend about $220 billion on capital projects this year, mostly related to AI, and its free cash flow was negative $42.4 billion over the past 12 months.
Amazon’s shares fell more than 6% after the results were released.
The company forecast fourth-quarter sales of $240 billion to $247 billion, and investors will be watching for executives’ comments on holiday shopping during a Thursday earnings call.
Amazon reported fiscal third-quarter sales and earnings below analysts’ expectations.
Its shares fell more than 6% in after-market trading as investors focused on its core business.
The company forecast fourth-quarter sales of $240 billion to $247 billion, below analysts’ average expectation.
Amazon Web Services revenue grew 39.3% year over year, its fastest rate in nearly five years, according to the company.
- Who
- Amazon, the Seattle-based company.
- What
- It missed analysts’ third-quarter targets and gave a cautious fourth-quarter sales outlook, while AWS revenue grew strongly.
- When
- The results were released on October 29, 2026, for the fiscal quarter ended September 30.
- Where
- Seattle, Washington, is the company’s base; its shares fell in after-market trading.
- Why
- Investors focused on the core business and the outlook after Amazon’s results missed expectations.
This story does not have two clearly opposing sides.
CEO Andy Jassy told investors Amazon expected capital spending of $220 billion, mostly on artificial intelligence.
Amazon recorded third-quarter sales of $201.94 billion and net income of $20.69 billion.
Amazon released its results and fourth-quarter sales forecast.
Amazon shares fell more than 6% in after-market trading.
- Third-quarter sales
- $201.94 billion
- Third-quarter net income
- $20.69 billion, or $1.89 per share
- AWS revenue growth
- 39.3% year over year
- Fourth-quarter sales forecast
- $240 billion to $247 billion
- After-market share move
- Down more than 6%
5 sources
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