In brief
Amazon reported a 12% year‑on‑year increase in net sales to $201.94 billion in Q3 2026, driven largely by AWS growth. Net income dropped 2.4% to $20.69 billion, largely because of a $9.5 billion pretax gain from its stake in Anthropic. The company expects Q4 net sales of $240 billion to $247 billion, but investors note that the impact of AI-related gains remains an open question.
On October 29, 2026, Amazon announced its third‑quarter results for the period ending September 30, reporting net sales of $201.94 billion, a 12 % year‑on‑year increase, while net income fell 2.4 % to $20.69 billion.
Amazon attributed the rise in revenue largely to its Amazon Web Services (AWS) segment, which posted net sales of $45.98 billion, up 39.3 % from the same quarter a year earlier, and operating income of $17.77 billion, an increase of 55 % to $11.43 billion a year earlier.
Advertising services also contributed to growth, with sales rising 11 % to $19.64 billion year‑on‑year.
The decline in net income, however, was driven by a $9.5 billion pretax gain recorded in the third quarter of 2025 from Amazon’s investment in AI firm Anthropic. This one‑time gain pushed net income down from $21.19 billion a year earlier.
Amazon’s diluted earnings per share fell to $1.89 from $1.95 yesterday, reflecting the same net income impact.
Free cash flow for the 12‑month period ended September 30 turned negative, with an outflow of $42.4 billion compared with an inflow of $14.8 billion a year earlier, primarily because of increased investment in AI infrastructure.
Looking ahead, Amazon forecasts fourth‑quarter net sales in the range of $240 billion to $247 billion, representing year‑on‑year growth of 12 % to 16 %. Operating income is projected to reach $28.5 billion to $33.5 billion, up from $25 billion a year earlier.
The company’s share price closed at $254.60 on October 28, 2026, up 0.6 % from the previous close on a volume of ~29.5 million shares.
Asian markets reacted to Amazon’s earnings announcement with mixed swings, as noted by Hong Kong broadcaster RTHK, reflecting broader volatility around AI‑related earnings.
While the quarterly results highlight robust revenue growth, several uncertainties remain. Chief among them is how the extraordinary pretax gains from Anthropic will shape future earnings, whether AWS’s rapid growth can be sustained, and how increased AI investment spending will affect long‑term cash flow. Investors and analysts continue to monitor these variables as Amazon prepares for its next quarter.
