Global Finance News
01 Nov 2026, 11:00
Amazon Q3 Revenue Rises 12% as AWS Growth Accelerates and Operating Margin Hits Record
Amazon (NASDAQ: AMZN) reported strong third-quarter 2026 results, with revenue rising 12% year over year to $201.9 billion and operating income climbing to $28.1 billion from $17.4 billion. Operating margin reached a record 13.9%.
AWS was the standout growth engine. Cloud revenue increased 39% to $46.0 billion, its fastest growth rate in nearly five years, while AWS operating income rose to $17.8 billion from $11.4 billion. Management said AWS is now running at an annualized revenue rate of about $184 billion and expects growth above 40% in both 2027 and 2028.
North America sales increased 6% to $112.9 billion and segment operating income nearly doubled to $8.7 billion. International sales rose 5% to $43.1 billion, or 8% excluding currency effects.
Net income slipped slightly to $20.7 billion, or $1.89 per share, from $21.2 billion, largely because the prior-year quarter included $9.5 billion of pretax gains tied to Amazon’s investment in Anthropic. Operating cash flow, however, increased 29% to $168.3 billion over the trailing 12 months.
Free cash flow turned negative at $42.4 billion over the trailing 12 months as property and equipment spending increased sharply, primarily because of AI infrastructure investment. Amazon still expects 2026 cash capital expenditures of about $220 billion.
For the fourth quarter, Amazon expects revenue of $240 billion to $247 billion, representing 12% to 16% growth, and operating income of $28.5 billion to $33.5 billion. The results reinforce Amazon’s accelerating exposure to AI and cloud demand, although the scale of infrastructure spending remains an important consideration for cash flow.
Amazon (NASDAQ: AMZN) reported strong third-quarter 2026 results, with revenue rising 12% year over year to $201.9 billion and operating income climbing to $28.1 billion from $17.4 billion. Operating margin reached a record 13.9%.
AWS was the standout growth engine. Cloud revenue increased 39% to $46.0 billion, its fastest growth rate in nearly five years, while AWS operating income rose to $17.8 billion from $11.4 billion. Management said AWS is now running at an annualized revenue rate of about $184 billion and expects growth above 40% in both 2027 and 2028.
North America sales increased 6% to $112.9 billion and segment operating income nearly doubled to $8.7 billion. International sales rose 5% to $43.1 billion, or 8% excluding currency effects.
Net income slipped slightly to $20.7 billion, or $1.89 per share, from $21.2 billion, largely because the prior-year quarter included $9.5 billion of pretax gains tied to Amazon’s investment in Anthropic. Operating cash flow, however, increased 29% to $168.3 billion over the trailing 12 months.
Free cash flow turned negative at $42.4 billion over the trailing 12 months as property and equipment spending increased sharply, primarily because of AI infrastructure investment. Amazon still expects 2026 cash capital expenditures of about $220 billion.
For the fourth quarter, Amazon expects revenue of $240 billion to $247 billion, representing 12% to 16% growth, and operating income of $28.5 billion to $33.5 billion. The results reinforce Amazon’s accelerating exposure to AI and cloud demand, although the scale of infrastructure spending remains an important consideration for cash flow.
