Amazon delivers $201.9 billion in quarterly revenue and record profitability, while accelerating artificial intelligence investments and forecasting continued growth.
Amazon (AMZN) reported strong third-quarter 2026 financial results Thursday, with revenue climbing 12% year over year to $201.9 billion, driven by accelerating cloud computing demand and improving retail profitability.
Operating income surged to $28.1 billion from $17.4 billion a year earlier, delivering a record operating margin of 13.9%.
Amazon Web Services (AWS) emerged as a major growth driver, with revenue jumping 39% to $46 billion, its fastest expansion in nearly five years. The cloud division reached an annualized revenue run rate of $184 billion, while operating income increased to $17.8 billion.
Despite stronger operating performance, net income declined slightly to $20.7 billion, or $1.89 per share, reflecting investment-related gains recorded in the prior year.
CEO Andy Jassy highlighted accelerating AI adoption, projecting AWS revenue growth exceeding 40% in both 2027 and 2028.
Amazon continues aggressively expanding its artificial intelligence infrastructure, with annual capital expenditures expected to reach approximately $220 billion in 2026.
However, substantial infrastructure investments contributed to a trailing twelve-month free cash outflow of $42.4 billion.
Looking ahead, Amazon forecasts fourth-quarter revenue between $240 billion and $247 billion, representing annual growth of 12% to 16%.
With record operating margins, accelerating AWS demand, and expanding AI capabilities, Amazon is positioning itself for sustained growth, although elevated capital spending remains a key consideration for investors.
