Amazon Q3 revenue hits $201.94 billion as cloud unit grows 39.3%

Amazon reported net sales of $201.94 billion for the third quarter of 2026, a figure that fell short of analyst expectations.

The Seattle-based company posted net income of $20.69 billion, or $1.89 per share, for the three-month period ended Sept. 30. Analysts had forecast earnings of $1.97 per share on revenue of $202.2 billion, according to FactSet. This marked a decline from the year-ago period, when the company reported $21.19 billion in net income, or $1.95 per share, on sales of $180.17 billion.

Revenue rose 12% year over year. The company attributed part of the modest growth to a calendar shift for its Prime Day sales event. Prime Day took place in the second quarter this year for most large markets, including the United States, whereas the 2025 event occurred entirely within the third quarter. Amazon stated that excluding this timing difference, sales growth would have been approximately 4% higher.

The Amazon Web Services division remained the primary driver of growth. Sales in the cloud computing unit rose 39.3% to $46 billion. This represents the fastest growth rate for the unit in nearly five years, according to the company. The increase follows a 37% growth rate in the previous quarter.

Stocks fell 7% in after-hours trading following the release of the results. Investors focused on the company’s core operations and its cash flow position. Amazon reported a free cash flow loss of $42.4 billion over the trailing 12 months as it continues to invest in artificial infrastructure.

CEO Andy Jassy told investors on an earnings call that the company expects to spend $220 billion in capital this year. This budget is largely allocated to the construction of AI data centers. Jassy noted that this figure includes outlays for robots, semiconductors, and satellites. The amount is up from a $200 billion plan announced in February and significantly exceeds the $128 billion spent in the previous year.

Jassy stated that the company is installing an AI chip roughly every 14 seconds. He projected that AWS sales will increase 40% annually over the next two years and that the unit will become a business valued at more than $1 trillion within the next decade. “The opportunity remains extraordinary,” Jassy said.

Amazon expects net sales between $240 billion and $247 billion for the fourth quarter. This represents a 12% to 16% increase compared to the same period last year. Analysts had projected sales of $244.16 billion for the holiday season.

The company plans to invest more than $1 billion over the next five years in communities where it operates data centers. The funds will support education, job training, and water and energy preservation projects. These investments follow broader industry moves to address local concerns regarding data center expansion.