Amazon’s Cloud Surges, but Q3 Results Fall Short of Forecasts

WHO:

Yahoo Finance - Amazon reported its third-quarter results.

ABC News - Amazon CEO and President Andy Jassy discussed the company’s capital spending and capacity with investors.

Techmeme - CNBC reporter Jordan Novet reported Amazon Web Services (AWS) results.

ABC News - Amazon said it planned to hire 300,000 U.S. seasonal workers for the holiday shopping period, up from 250,000 the previous year.

WHAT:

ABC News - Amazon’s sales rose from $180.17 billion in the year-ago quarter to $201.94 billion in the latest quarter.

GeekWire - Andy Jassy said he expects AWS growth to exceed 40% in 2027 and 2028.

GeekWire - Amazon shares fell more than 7% in after-hours trading.

Techmeme - Amazon spent more than $77 billion on property and equipment during the third quarter, according to Bloomberg.

Techmeme - Amazon’s property-and-equipment spending contributed to a reported $42.4 billion free-cash outflow, according to Bloomberg.

Yahoo Finance - Amazon reported earnings per share of $1.89 and revenue of $201.9 billion; analysts had expected $1.97 per share and $202.25 billion in revenue, according to Bloomberg consensus estimates.

ABC News - Amazon reported net income of $20.69 billion, or $1.89 per share, compared with $21.19 billion, or $1.95 per share, in the year-ago quarter. Sales were $201.94 billion, versus $180.17 billion in the year-ago period.

ABC News - FactSet analysts expected earnings of $1.97 per share on sales of $202.2 billion.

Yahoo Finance - AWS revenue was $45.9 billion, versus expectations of $45.68 billion. Online store sales were $68.47 billion, versus Wall Street expectations of $69.6 billion. Advertising sales were $19.6 billion.

Techmeme - AWS revenue rose 39% year over year to $45.98 billion, exceeding an estimate of $45.29 billion. AWS operating income rose 55% to $17.77 billion, above an estimate of $16.97 billion.

ABC News - AWS sales grew 39.3% in the quarter, up from 37% in the prior quarter, marking the fastest growth rate in nearly five years, according to Amazon.

TechCrunch - Amazon reported negative free cash flow of $2.4 billion.

Yahoo Finance - Amazon’s shares fell more than 9% after the results; ABC News reported a decline of more than 6% in after-hours trading.

Yahoo Finance - Amazon forecast fourth-quarter net sales of $240 billion to $247 billion, compared with an analyst expectation of $244.5 billion. ABC News said the forecast represented 12% to 16% growth year over year and reported an analyst expectation of $244.16 billion.

ABC News - Jassy disclosed that Amazon expected capital spending, mostly related to artificial intelligence, to total $220 billion, including robots, semiconductors and satellites. The plan was up from $200 billion announced in February and exceeded the $128 billion spent on capital investments the previous year.

ABC News - Jassy said Amazon would not have enough capacity to meet all of its demand even at the $220 billion spending level.

WHERE:

ABC News - Amazon is based in Seattle; its seasonal hiring plan covered the United States.

WHEN:

Techmeme - Amazon said in July that it would likely spend $220 billion on capital expenditures in 2026, according to Bloomberg.

ABC News - The reported fiscal third quarter ended Sept. 30.

Yahoo Finance - The results were reported Thursday; Amazon’s fourth-quarter outlook covers the holiday shopping period.

ABC News - Amazon planned to discuss the holiday shopping season on its Thursday earnings call.

WHY:

ABC News - Alphabet reported weaker-than-expected summer growth and more than $51 billion in property and equipment purchases, prompting concerns about free cash flow and weighing on the AI industry.

ABC News - Jassy cited higher memory-chip costs as the main reason for increasing Amazon’s capital-spending plan.

ABC News - Investors were watching whether Amazon’s artificial-intelligence spending was beginning to pay off; the company’s cautious holiday-quarter sales outlook and below-estimate results accompanied a decline in its shares.

HOW:

ABC News - Amazon’s quarterly results included growth in AWS, its cloud-computing unit, while its overall sales and earnings fell short of analysts’ estimates.

(UPDATED October 30, 2026 12:25 UTC)

Amazon sales climbed, but earnings and holiday forecasts missed expectations. AWS revenue surged, while shares fell sharply. CEO Andy Jassy said planned spending, mostly on artificial intelligence, would reach $220 billion.

(UPDATED October 30, 2026 00:00 UTC)

Amazon reported third-quarter sales of $201.94 billion, up from $180.17 billion a year earlier, but earnings of $1.89 per share and revenue both missed analysts’ expectations, sending its shares down more than 7% in after-hours trading. Its cloud unit, AWS, grew sales 39% to about $46 billion, while Amazon forecast holiday-quarter sales of $240 billion to $247 billion, below analysts’ expectations at the midpoint. CEO Andy Jassy said Amazon plans to spend $220 billion on capital investments, largely for artificial intelligence, and expects to hire 300,000 U.S. seasonal workers for the holiday shopping period.

(UPDATED October 29, 2026 23:07 UTC)

Amazon reported third-quarter sales of $201.94 billion and earnings of $1.89 per share, both below analysts’ expectations, while its AWS cloud business grew revenue 39% to nearly $46 billion. The company spent more than $77 billion on property and equipment during the quarter and expects capital spending, largely tied to artificial intelligence, to reach $220 billion; CEO Andy Jassy said Amazon still won’t have enough capacity to meet all its demand. Amazon forecast fourth-quarter sales of $240 billion to $247 billion, and its shares fell more than 6% in after-hours trading as investors weighed the outlook and spending; the company also plans to hire 300,000 seasonal workers in the United States.

(UPDATED October 29, 2026 22:03 UTC)

Amazon reported third-quarter revenue of about $201.9 billion and earnings of $1.89 per share, both below analysts’ expectations, and its shares fell more than 6% in after-hours trading. AWS revenue climbed 39% to nearly $46 billion, its fastest growth in nearly five years, while Amazon forecast fourth-quarter sales of $240 billion to $247 billion, below the midpoint of analyst expectations. CEO Andy Jassy said Amazon expects to spend $220 billion on capital investments, mostly tied to artificial intelligence, citing higher memory-chip costs, and plans to hire 300,000 U.S. seasonal workers for the holiday period.