In brief
Amazon’s third‑quarter 2026 results reveal a 12% jump in net sales driven by its cloud unit AWS, while net income slipped 2.4% amid a one‑year‑later pretax gain from its stake in AI firm Anthropic. The company projects its fourth‑quarter sales to reach $240‑$247 billion, up 12‑16% from a year earlier, with operating income expected at $28.5‑$33.5 billion.
In San Francisco on Thursday, Amazon announced its third‑quarter 2026 financial results, showing net sales of $201.94 billion—a 12% year‑on‑year increase—while net income fell 2.4% to $20.69 billion.
The growth was largely driven by Amazon Web Services (AWS), whose net sales rose 39.3% to $45.98 billion, representing the division’s fastest expansion in nearly five years. AWS operating income also climbed sharply, rising 55% to $17.77 billion from $11.43 billion a year earlier.
Advertising services contributed an additional $19.64 billion in sales, growing 11% year‑on‑year. These combined gains in core business lines helped push overall sales up, even as certain cost factors weighed on profitability.
Net income fell by $0.5 billion from the prior year, primarily because Amazon registered a sizable pretax gain of $9.5 billion in Q3 2025 from its investment in the artificial‑intelligence company Anthropic. The unrealised performance on that investment reduced the quarter’s earnings, offsetting the positive impact of sales growth.
Amazon’s free cash flow turned negative for the twelve months ended September 30, with an outflow of $42.4 billion compared with an inflow of $14.8 billion a year earlier. The CEO emphasized that the large cash drain was mainly driven by increased spending on AI infrastructure, underscoring the company’s commitment to expanding its AI capabilities.
Looking ahead, Amazon expects fourth‑quarter net sales to range from $240 billion to $247 billion, translating to a year‑on‑year growth of 12% to 16%. Operating income projections for the same period are $28.5 billion to $33.5 billion, up from $25 billion a year earlier.
While Amazon’s revenue trajectory appears robust, the company remains cautious about the impact of its AI‑related investments on profitability. Executives noted that the pretax gain was a one‑time event tied to Anthropic and that future earnings would be more reflective of underlying business performance.
Overall, Amazon’s Q3 2026 results highlighted the continued strength of its cloud and advertising platforms, countered by a temporary dip in earnings due to a prior-year investment gain. The company’s forward outlook signals confidence in sustained revenue expansion as it invests aggressively in AI and other emerging technologies.
