GoKawiilAmazon Q3 revenue and EPS miss estimates as AWS growth hits 39%
Amazon's third-quarter net sales rose 12% to $201.9 billion, below the $202.2 billion analysts expected, with earnings per share of $1.89 versus a forecast $1.97. AWS was a standout, with sales of $45.98 billion and operating income nearly doubling to $17.8 billion, but free cash flow over the trailing 12 months turned negative $42.4 billion, a sharp reversal from positive $14.8 billion a year earlier. Amazon attributed the cash burn to heavy AI-related investment and reiterated plans for about $220 billion in capital expenditures for 2026.
GoKawiil's interpretation of the reporting above, not reported fact.
The negative free cash flow signals that Amazon's AI infrastructure buildout is consuming cash at a pace that could worry investors watching for returns on that spending. AWS's strong growth suggests cloud demand, possibly tied to AI workloads, remains robust and could eventually justify the capital outlay. The scale of planned 2026 capex, nearly matching expected fourth-quarter sales, underscores how central AI investment has become to Amazon's strategy, though whether it pays off remains to be seen.
- Amazon's total revenue and EPS fell short of Wall Street estimates in Q3.
- AWS revenue grew 39% year-over-year to $45.98 billion, with operating income nearly doubling.
- Trailing 12-month free cash flow turned negative $42.4 billion amid heavy AI-driven capital spending, with 2026 capex expected near $220 billion.
Source: techcrunch.com — Julie Bort, 2026-10-29
Published there as: “Amazon reported booming cloud revenue but otherwise missed expectations”
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