Amazon stock: AWS grows 39%, but the quarter falls short of forecasts

What happened. Amazon published its third-quarter 2026 results on 29 October, right after the New York close. Revenue was $201.9 billion, up 12% on last year. Operating income was $28.1 billion, against $17.4 billion a year ago. Net income was $20.7 billion, or $1.89 a share.

Against expectations. Yahoo Finance cites the Bloomberg consensus: $1.97 a share on revenue of $202.25 billion. So revenue and profit came in slightly lower. AWS was expected to bring in $45.68 billion and delivered $46 billion.

Where the growth is. AWS grew 39% and earned $17.8 billion in operating income. North America brought in $112.9 billion, up 6%. International was $43.1 billion, up 5%. Advertising was $19.6 billion, up 11%.

The cost of growth. Operating cash flow over 12 months rose to $168.3 billion. But after spending on equipment and buildings, free cash flow for the same period turned negative: minus $42.4 billion. A year ago it was plus $14.8 billion. That money is going into AI data centers.

Outlook. For the fourth quarter Amazon expects revenue of $240 billion to $247 billion and operating income of $28.5 billion to $33.5 billion. According to Yahoo Finance, analysts expected about $244.5 billion in revenue and about $33 billion in operating income.

Reaction. Per Yahoo Finance quotes at 4:55 p.m. New York time, the stock traded at $226.99 after hours, 6.9% below the close. Our take: the cloud is growing fast, but the market is looking at the outlook and at how much that growth costs. This is not advice to buy or sell.

Hechos confirmados

• Amazon's third-quarter 2026 revenue was $201.9 billion, up 12% on last year.^[1]
• Net income was $20.7 billion, or $1.89 a share. Operating income was $28.1 billion, against $17.4 billion a year ago.^[1]
• AWS revenue was $46.0 billion, up 39%, with AWS operating income of $17.8 billion.^[1]
• North America $112.9 billion (+6%), International $43.1 billion (+5%), advertising $19.6 billion (+11%).^[1]
• Trailing 12-month free cash flow was minus $42.4 billion. A year ago it was plus $14.8 billion.^[1]
• Fourth-quarter guidance: revenue of $240 billion to $247 billion, operating income of $28.5 billion to $33.5 billion.^[1]
• Bloomberg consensus: $1.97 a share on revenue of $202.25 billion, AWS at $45.68 billion.^[2]
• Analysts expected fourth-quarter guidance of about $244.5 billion in revenue and about $33 billion in operating income.^[2]
• At 4:55 p.m. New York time the stock traded at $226.99 after hours, down 6.9%.^[2]

Implicaciones

• ConfirmadoAmazon's cloud business is growing faster than a year ago: 39% against 20%.
• ConfirmadoSpending on AI data centers currently eats all of the operating cash flow.
• Nuestra lecturaIf AWS growth does not speed up further, the spending may keep weighing on the stock.

Todavía no se sabe

• How the stock opens in Friday's regular session.
• How much Amazon will spend on capacity next year.
• Whether AWS can keep growing above 35%.

A quién afecta

USA, Worldwide. Readers who follow big tech stocks and the AI market

Fuentes

1. Amazon.com, Inc. (Business Wire): Amazon.com Announces Third Quarter Results 29 de octubre de 2026 · oficial
2. Yahoo Finance: Amazon earnings live: Q3 earnings miss sends stock lower 29 de octubre de 2026 · medios