Amazon misses Q3 sales, profit estimates
AMZN•Amazon’s third-quarter net sales rose 12% to $201.9 billion, below analyst expectations, while adjusted EPS of $1.89 also missed estimates. AWS sales grew 39% year over year, and Amazon forecast fourth-quarter net sales of $240 billion to $247 billion.
1. Quarterly results
Amazon reported third-quarter net sales of $201.9 billion, up 12% year over year and below the $202.31 billion analyst estimate. Adjusted EPS was $1.89, compared with an estimate of $1.96.
2. Outlook and AWS
AWS sales rose 39% year over year, its fastest growth pace in nearly five years. Amazon expects fourth-quarter net sales of $240 billion to $247 billion, up 12% to 16% year over year, and operating income of $28.5 billion to $33.5 billion. The company continues to expect about $220 billion in cash capital expenditures in 2026.
3. Company comments
CEO Andy Jassy attributed AWS growth to expanded functionality and infrastructure investments. Amazon said broader selection and faster delivery helped it capture retail market share and improve margins, while higher spending on property and equipment, primarily for artificial intelligence, drove a free cash flow outflow.
