01—Abstract
Summary
Summary of the 8-K filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Amazon.com, Inc. reported its third quarter 2026 financial results on October 29, 2026.
The company announced strong growth in net sales, increasing by 12% to $201.9 billiona, driven by robust performance in its AWS segment and an improved operating margin of 13.9%, marking a company record. The company highlighted significant advancements in its artificial intelligence initiatives, particularly within AWS, with substantial revenue growth and strategic partnerships.
Despite overall net sales growth, net income saw a slight decrease compared to the prior year, primarily due to prior-year non-operating gains from investments. Amazon also noted a substantial increase in capital expenditures, signaling a continued investment in AI and infrastructure.
02—Key points
Key Highlights
- Q3 2026 net sales reached $201.9 billion, a 12% increase year-over-year, with a 13% increase excluding foreign exchange impacts.
- AWS segment sales surged by 39% year-over-year to $46.0 billion, with an annualized revenue run rate of $184 billion, marking its fastest growth in nearly five years.
- Operating income reached a record $28.1 billion, resulting in an operating margin of 13.9%.
- Capital expenditures saw a significant year-over-year increase of $94.8 billion, primarily driven by investments in artificial intelligence.
- Q4 2026 guidance projects net sales between $240.0 billion and $247.0 billion (12%-16% growth) and operating income between $28.5 billion and $33.5 billion.
- Amazon announced new AWS agreements with major tech players including Meta, NVIDIA, OpenAI, and Salesforce, underscoring its strategic focus on AI partnerships.
- Free cash flow for the trailing twelve months was an outflow of $42.4 billion, primarily due to increased capital expenditures.
03—Questions
Frequently Asked Questions
What were the key drivers of Amazon's Q3 2026 revenue growth?
Amazon's Q3 2026 revenue growth was primarily driven by a strong performance in the AWS segment, which saw sales increase by 39% year-over-year. The overall net sales increased by 12% to $201.9 billion. While Prime Day timing shifts impacted reported growth, underlying performance remained robust.
Why did net income decrease in Q3 2026 compared to Q3 2025?
The decrease in net income for Q3 2026 compared to Q3 2025 was primarily due to significant pre-tax gains of $9.5 billion recognized in the prior year's third quarter related to Amazon's investments in Anthropic. These non-operating gains did not recur in the current quarter.
What is the outlook for Q4 2026 based on the guidance provided?
For the fourth quarter of 2026, Amazon anticipates net sales to be between $240.0 billion and $247.0 billion, representing a year-over-year growth of 12% to 16%. Operating income is projected to be between $28.5 billion and $33.5 billion.
What is the significance of the increased capital expenditures?
The substantial increase in capital expenditures, totaling $210.7 billion for the trailing twelve months and noted as $94.8 billion higher year-over-year, is primarily attributed to Amazon's significant investments in artificial intelligence and related infrastructure. This signals a strategic focus on expanding its AI capabilities and capacity.
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