Stock

# Amazon (AMZN)

In Q3, Amazon's AWS sales grew 39% to $46.0 billion and operating income reached $28.1 billion, while trailing free cash flow fell to an outflow of $42.4 billion on AI spending.

Updated Oct 30, 2026

Information and analysis only, not a recommendation to buy, sell or hold any security. The author may own securities discussed.

Researched and drafted with AI agents. Every figure is taken from a source cited on the page.

Analysis and information

## What it does

Amazon runs online stores, reported in its North America and International segments. Amazon Web Services (AWS) rents computing, storage and AI services to businesses.

## Role in the theme

In **Platforms and software**, Amazon rents AI computing through AWS. Its data center spending turned its free cash flow negative for the twelve months to September 30, by its own measure.

## Latest

- **2026-10-29 (Q3 results):** Net sales rose 12% to $201.9 billion, inside the $197.0-202.0 billion guidance. AWS segment sales rose 39% to $46.0 billion.
- **2026-10-29:** Operating income was $28.1 billion, above the $22.5-26.5 billion guidance, for a 13.9% operating margin. AWS operating income was $17.8 billion.
- **2026-10-29:** Free cash flow was an outflow of $42.4 billion for the trailing twelve months, after an outflow of $7.6 billion to June. Purchases of property and equipment, net of proceeds and incentives, rose by $94.8 billion from a year earlier, mainly for AI. Operating cash flow was $168.3 billion.
- **2026-10-29:** Q4 guidance: net sales of $240.0-247.0 billion and operating income of $28.5-33.5 billion.
- **2026-07-30:** In Q2, AWS segment sales rose 37% to $42.2 billion.

## What to watch

- Q4 net sales and operating income against the guidance ranges.
- AWS growth after 39% in Q3.
- Capital spending and free cash flow.
- Next report: Q4 2026 results, date not yet announced.

## Covered in

- Theme: [Platforms and software](/research/themes/platforms-software)

## Sources

Primary means the publisher of the data or the filing; secondary means press or an aggregator.
- [Amazon Q3 2026 results (8-K exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1018724/000101872426000038/amzn-20260930xex991.htm)Primary 2026-10-29
- [Amazon Q2 2026 results](https://www.aboutamazon.com/news/company-news/amazon-earnings-q2-2026-report)Primary 2026-07-30
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