Amazon (AMZN) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $201.944B, up 12% YoY; operating income rose 61% to $28.1B, a record 13.9% margin.

• AWS sales grew 39.3% to $46.0B, with a $184B annualized revenue run rate; net income was $20.7B, down from $21.2B.

Financial highlights

• Q3 diluted EPS was $1.89 vs. $1.95; prior-year net income included $9.5B in pre-tax Anthropic investment gains.

• Nine-month net sales rose 16% to $584.1B and operating income increased to $79.4B from $55.0B.

• TTM net sales reached $797.5B, up 15%; TTM operating income was $104.4B, up 37%, and net income was $134.8B, up 76%.

• TTM operating cash flow rose 29% to $168.3B; TTM free cash flow was -$42.4B vs. $14.8B.

Outlook and guidance

• Q4 net sales guidance is $240B–$247B, up 12%–16% YoY, including a 60 bps FX headwind; operating income guidance is $28.5B–$33.5B.

• Q4 advertising revenue is expected to grow in the high teens YoY.

• 2026 cash CapEx is expected at ~$220B, primarily for AWS; 2027 spending is expected to be meaningfully higher.

• AWS growth is projected above 40% in both 2027 and 2028; management sees potential for a trillion-dollar revenue business within five to 10 years.

• Amazon Leo initial service remains on track for 2026; guidance assumes no additional acquisitions, restructurings, or legal settlements.