Amazon reported third-quarter 2026 net sales of $201.94 billion, up 12% from a year earlier, while earnings per share came in below analysts' expectations, according to the Associated Press. Amazon Web Services was a standout: cloud revenue rose 39.3% to $46 billion, its fastest growth in nearly five years.
The company said the timing of Prime Day affected the comparison between quarters. It also outlined substantial investment plans for data centers and artificial-intelligence infrastructure, while forecasting fourth-quarter sales below the midpoint of analyst expectations. Investors therefore had to weigh strong cloud momentum against spending needs and a cautious holiday-quarter outlook.
AWS growth highlights continued demand for cloud capacity and AI-related services. At the same time, large capital commitments can pressure free cash flow, especially when new infrastructure takes time to reach full utilization and generate returns.
For the wider technology sector, Amazon's results reinforce the importance of separating revenue growth from investment costs. Customers and investors will be watching cloud demand, operating margins and the pace at which AI infrastructure spending produces sustainable cash flow.
Source: Associated Press, October 30, 2026 — https://apnews.com/article/2de72b65d63006a7ce85eab441e2d6b7
