01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Amazon.com, Inc. reported net sales of $201.9 billiona for the third quarter of 2026, up from $180.2 billion a year earlier, and sales rose 12% for the quarter and 16% for the nine months.
AWS net sales grew 39% in the quarter to $46.0 billion, and operating income rose to $28.1 billionb from $17.4 billion. Net income was $20.7 billion for the quarter, compared with $21.2 billion a year earlier, and $113.6 billion for the nine months, up from $56.5 billion. The nine-month result was driven largely by $68.4 billion of other income, primarily from upward adjustments on Anthropic nonvoting preferred stock of $62.8 billion.
Cash capital expenditures were $75.9 billionc in Q3 2026 and $172.2 billion for the nine months, and free cash flow for the trailing twelve months was negative $42.4 billion, compared with $14.8 billion a year earlier. Long-term debt rose to $173.1 billion from $65.6 billion at year-end 2025, reflecting several note issuances in 2026 and a $17.5 billion term loan. Management expects cash capital expenditures of approximately $220 billion in 2026 and a meaningful increase in 2027.
Amazon also disclosed investments of $50.0 billiond in OpenAI Series C Preferred Stock and expanded commitments with AWS customers OpenAI and Anthropic, with contracts not yet recognized estimated at $578 billion as of September 30, 2026. Fourth-quarter 2026 guidance calls for net sales of $240.0 billion to $247.0 billion, growing 12% to 16% year over year, and operating income of $28.5 billion to $33.5 billion. The filing also discloses a pending $10.9 billion acquisition of Globalstar, expected to close in 2027, and a new FTC and 22-state Attorney General complaint over advertising auction practices filed in August 2026.
02—Key points
Key Highlights
- Q3 2026 net sales were $201.9 billion, up 12% year over year, and nine-month net sales were $584.1 billion, up 16%.
- AWS net sales rose 39% to $46.0 billion in Q3 2026, and AWS operating income increased to $17.8 billion from $11.4 billion.
- Operating income was $28.1 billion in Q3 2026 versus $17.4 billion a year earlier; Q3 net income was $20.7 billion versus $21.2 billion.
- Nine-month other income of $68.4 billion, mainly from $62.8 billion of upward adjustments on Anthropic nonvoting preferred stock, drove nine-month net income to $113.6 billion.
- Cash capital expenditures reached $172.2 billion for the nine months, and trailing twelve-month free cash flow was negative $42.4 billion, compared with $14.8 billion a year earlier.
- Long-term debt increased to $173.1 billion from $65.6 billion at December 31, 2025, including a $37.0 billion March 2026 notes issuance, a $25.0 billion July 2026 issuance, and a $17.5 billion term loan.
- Q4 2026 guidance: net sales of $240.0 billion to $247.0 billion and operating income of $28.5 billion to $33.5 billion; 2026 cash capital expenditures expected at approximately $220 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Amazon kept $0.10.
- Revenue$201.94B100.0%
- Cost of revenue−$94.57B46.8%
- Gross profit$107.37B53.2%
- Operating costs−$79.30B39.3%
- Operating income$28.08B13.9%
- Interest, other & tax−$7.39B3.7%
- Net income$20.68B10.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $201.94B$180.17B | +12.1% |
| Cost of Revenue | $94.57B$88.67B | +6.7% |
| Gross Profit | $107.37B$91.50B | +17.3% |
| Operating Expenses | $173.87B$162.75B | +6.8% |
| Operating Income | $28.08B$17.42B | +61.2% |
| Net Income | $20.68B$21.19B | −2.4% |
| EPS (Basic) | $1.92$1.98 | −3.0% |
| EPS (Diluted) | $1.89$1.95 | −3.1% |
| Shares Outstanding (Basic) | 10.80B10.67B | +1.2% |
| Shares Outstanding (Diluted) | 10.93B10.85B | +0.8% |
05—Questions
Frequently Asked Questions
How much of the nine-month profit came from operations versus investment gains?
Nine-month operating income was $79.4 billion, while total non-operating income was $68.2 billion, primarily from other income of $68.4 billion. The filing attributes most of that other income to upward price adjustments on Anthropic nonvoting preferred stock ($62.8 billion) and reclassification gains on available-for-sale debt securities ($4.5 billion).
Why did free cash flow turn negative?
Trailing twelve-month operating cash flow was $168.3 billion, but purchases of property and equipment, net of proceeds and incentives, were $210.7 billion, resulting in free cash flow of negative $42.4 billion. The filing states that capital expenditures primarily reflect investments in technology infrastructure, most of which supports AWS growth, and that cash capital expenditures are expected to meaningfully increase in 2027.
How did debt and financing change in 2026?
Long-term debt rose to $173.1 billion at September 30, 2026, from $65.6 billion at December 31, 2025. Financing included a $37.0 billion March 2026 notes issuance, a $25.0 billion July 2026 notes issuance, euro, Swiss franc, Canadian dollar, and sterling-denominated notes, and a $17.5 billion term loan drawn in September 2026. The filing also notes a supplier financing Loan Facility of up to approximately $80.0 billion for purchases from Q1 2027 through Q3 2028.
What major AI-related commitments and investments does the filing disclose?
Amazon invested $50.0 billion in OpenAI Series C Preferred Stock, with a further $35.0 billion commitment fully funded by Q3 2026 per the filing. It also invested $5.0 billion each in Anthropic Series G and Series H nonvoting preferred stock and established a financing facility of up to $20.0 billion for Anthropic, reduced to $15.0 billion after the Series H investment. Unrecognized AWS performance obligations from long-term contracts were estimated at $578 billion as of September 30, 2026.
What significant legal and corporate events occurred during the quarter?
In August 2026, the Federal Trade Commission and 22 state Attorneys General filed a complaint alleging Amazon harmed advertisers through the use of reserve prices in sponsored ad auctions, and Texas filed a related complaint. On April 13, 2026, Amazon agreed to acquire Globalstar, Inc. for a mix of cash and stock, implying a value of approximately $10.9 billion including debt, with closing expected in 2027. The company states it disputes the allegations and intends to defend itself vigorously.
06—Continue