Amazon Earnings: AWS Sales Growth Speeds Up to 39%
Amazon’s cloud unit AWS sped up to 39% growth in the third quarter of 2026, as fast as five years earlier, on sales nearly three times as large. AWS’s operating margin rose to 38.7% from 34.6% a year earlier, and Amazon’s $28.1 billion of operating income topped its own forecast for a third straight quarter.
The short answer. AWS grew 39% from a year earlier, as fast as five years ago, from sales 2.9 times as large. The same pace therefore added $13.0 billion of quarterly sales, against $4.5 billion then. AWS rents out the computing power that many businesses run their websites and apps on. Amazon spent $77.3 billion on buildings, servers and other equipment in the quarter, and ties most of the past year’s increase to AI. Amazon’s sales rose 12% to $201.9 billion. Net income dipped to $20.7 billion, or $1.89 a share, which Amazon puts down mainly to a $9.5 billion Anthropic gain in last year’s quarter. In after-hours trading the shares were 11.4% below the regular-session close at 4:02 p.m. ET.
Amazon’s third quarter of 2026 in three numbers
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Amazon earnings report for the third quarter of 2026
Amazon sold $201.9 billion of goods and services in the three months to September 30, 2026, 12% more than a year earlier. Sales landed inside the range Amazon gave a quarter ago, and operating income above the top of its range.
Net income fell to $20.7 billion, or $1.89 per diluted share, from $21.2 billion a year earlier. Amazon says the decrease comes primarily from $9.5 billion of pre-tax gains on its investments in Anthropic, the company behind the Claude AI models, in the year-earlier quarter.
Amazon still holds Anthropic stock and convertible notes. Anthropic’s S-1, filed on October 26 for a stock market listing, says Amazon will hold more than 5% of its stock once the notes and preferred shares convert.
In after-hours trading Amazon shares were at $215.88 at 4:02 p.m. ET, 11.4% below the regular-session close of $243.79 (StockTitan real-time Nasdaq data).
Operating income came to 13.9% of sales, which Amazon calls “Amazon’s highest operating margin ever.” Most of that operating income came from AWS, as the next section shows.
North America sales rose 6% and International sales 5%, according to Amazon’s release. Prime Day fell in the second quarter this year in most large countries, while in 2025 it fell entirely in the third. Amazon says that without the shift its third-quarter growth would have been about 4 percentage points higher.
Operating income was $28.1 billion against $17.4 billion a year earlier; it is the profit from running the business, before interest, investment gains and taxes. The year-earlier figure included $2.5 billion for a legal settlement with the Federal Trade Commission and $1.8 billion of estimated severance costs.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Net sales | $201.9B | $180.2B |
| North America sales | $112.9B | $106.3B |
| International sales | $43.1B | $40.9B |
| AWS sales | $46.0B | $33.0B |
| Operating income | $28.1B | $17.4B |
| AWS operating income | $17.8B | $11.4B |
| Net income | $20.7B | $21.2B |
| Diluted earnings per share | $1.89 | $1.95 |
Source: Amazon’s Q3 2026 results release, October 29, 2026, which also gives the Q3 2025 figures.
AWS revenue growth and profit
AWS, the part of Amazon that rents computing power and storage to other businesses, grew 39%. That is as fast as in the third quarter of 2021, from sales nearly three times as large. It earns most of Amazon’s operating income.
In the third quarter of 2021 AWS sold $16.1 billion of services, according to Amazon’s release for that quarter. This quarter it sold $46.0 billion, 2.9 times as much, by our count.
At that size the same pace adds far more. AWS sales rose $13.0 billion from a year earlier, against $4.5 billion in the third quarter of 2021, by our count.
After peaking at 40% in the fourth quarter of 2021, growth slowed to 12% in mid-2023, by our calculation from Amazon’s quarterly sales. It has risen in each of the last five quarters, and Amazon’s release calls the 39.3% pace “its fastest growth in nearly five years.”
Show the data
| Category | AWS sales growth | Note |
|---|---|---|
| Q3 2021 | 38.9% | Quarterly sales of $16.1 billion |
| Q4 2021 | 39.5% | |
| Q1 2022 | 36.6% | |
| Q2 2022 | 33.3% | |
| Q3 2022 | 27.5% | |
| Q4 2022 | 20.2% | |
| Q1 2023 | 15.8% | |
| Q2 2023 | 12.2% | Low point, 12.2% growth |
| Q3 2023 | 12.3% | |
| Q4 2023 | 13.2% | |
| Q1 2024 | 17.2% | |
| Q2 2024 | 18.7% | |
| Q3 2024 | 19.1% | |
| Q4 2024 | 18.9% | |
| Q1 2025 | 16.9% | |
| Q2 2025 | 17.5% | |
| Q3 2025 | 20.2% | |
| Q4 2025 | 23.6% | |
| Q1 2026 | 28.4% | |
| Q2 2026 | 36.8% | |
| Q3 2026 | 39.3% | Quarterly sales of $46.0 billion |
AWS made $17.8 billion of operating income, which by our calculation is 63% of Amazon’s total, from 23% of its sales. Amazon’s segment tables put its operating margin at 38.7%, against 34.6% a year earlier and 30.3% in the third quarter of 2021.
Andy Jassy, Amazon’s chief executive, said AWS has reached a “$184 billion revenue run rate,” its sales pace over a full year, and that Amazon projects AWS revenue growth “of over 40% both in 2027 and in 2028.” That is Amazon’s own projection of growth above this quarter’s pace in each of the next two years.
Show the data
| Category | Value |
|---|---|
| Q1 2025 | $29.3B |
| Q2 2025 | $30.9B |
| Q3 2025 | $33.0B |
| Q4 2025 | $35.6B |
| Q1 2026 | $37.6B |
| Q2 2026 | $42.2B |
| Q3 2026 | $46.0B |
AWS vs Google Cloud and Microsoft Azure
AWS is still the largest of the three big cloud businesses by sales. Google Cloud grew 103% and Microsoft Azure 48% in the same three months, faster than AWS from smaller bases.
Measured in dollars, AWS sales rose $13.0 billion from a year earlier, against $10.8 billion for Azure (Microsoft’s release) and $15.6 billion for Google Cloud (Alphabet’s release), by our count. The three units are not the same business. Google Cloud also counts Workspace, Google’s office software, and Alphabet says sales of its TPU systems, the AI chips it builds, were a meaningful part of its growth.
Show the data
| Quarter ended September 30, 2026 | Sales | A year earlier | Gain | Growth |
|---|---|---|---|---|
| AWS | $46.0B | $33.0B | $13.0B | 39% |
| Microsoft Azure | $33.2B | $22.4B | $10.8B | 48% |
| Google Cloud | $30.7B | $15.2B | $15.6B | 103% |
Source: Amazon’s supplemental tables, Microsoft’s product revenue table and Alphabet’s segment table, each in the company’s own release.
Amazon AI spending and free cash flow
Amazon paid $77.3 billion for buildings, servers and other equipment in the quarter. Over the past 12 months that spending outran the cash its businesses brought in.
That quarterly bill compares with $35.1 billion a year earlier, in the cash flow statement of the release.
Free cash flow is the cash from operations minus those purchases, net of what Amazon gets back from sales and incentives. For the 12 months to September 30, 2026 it was an outflow of $42.4 billion, against positive free cash flow of $14.8 billion a year earlier.
Amazon says the 12-month increase in that spending “primarily reflects investments in artificial intelligence,” and that it continues “to expect 2026 cash capital expenditures to be approximately $220 billion.”
Amazon has also borrowed more this year. Its long-term debt stood at $173.1 billion on September 30, 2026, against $65.6 billion at the end of 2025, on the balance sheet in the release.
Show the data
| Category | Value |
|---|---|
| Q1 2025 | $25.0B |
| Q2 2025 | $32.2B |
| Q3 2025 | $35.1B |
| Q4 2025 | $39.5B |
| Q1 2026 | $44.2B |
| Q2 2026 | $54.2B |
| Q3 2026 | $77.3B |
Amazon guidance for the holiday quarter
Amazon expects $240.0 billion to $247.0 billion of sales in the fourth quarter, the one that holds the holiday season.
That range means growth of 12% to 16% from a year earlier, when the quarter brought $213.4 billion of sales. Amazon expects operating income of $28.5 billion to $33.5 billion.
The year-earlier holiday quarter made $25.0 billion of operating income. That operating income included three special charges Amazon named at the time, and without them it would have been $27.4 billion.
By our count, sales came in above the top of Amazon’s own range in four of the last five quarters, and operating income in the last three. The Q3 2025 and Q4 2025 operating income figures inside the range included special charges Amazon named, which its forecasts had not included. The new forecast assumes exchange rates will cut growth by about 0.6 percentage points.
Show the data
| Item | Low | High | Value |
|---|---|---|---|
| Q3 2025 | $15.5B | $20.5B | $17.4B |
| Q4 2025 | $21.0B | $26.0B | $25.0B |
| Q1 2026 | $16.5B | $21.5B | $23.9B |
| Q2 2026 | $20.0B | $24.0B | $27.5B |
| Q3 2026 | $22.5B | $26.5B | $28.1B |
Show the data
| Quarter | Sales forecast | Sales | Operating income forecast | Operating income |
|---|---|---|---|---|
| Q3 2025 | $174.0B to $179.5B | $180.2B | $15.5B to $20.5B | $17.4B |
| Q4 2025 | $206.0B to $213.0B | $213.4B | $21.0B to $26.0B | $25.0B |
| Q1 2026 | $173.5B to $178.5B | $181.5B | $16.5B to $21.5B | $23.9B |
| Q2 2026 | $194.0B to $199.0B | $200.6B | $20.0B to $24.0B | $27.5B |
| Q3 2026 | $197.0B to $202.0B | $201.9B | $22.5B to $26.5B | $28.1B |
Source: Amazon’s results releases; each forecast is the range given in the release a quarter earlier.
Amazon advertising revenue
Advertising brought in $19.6 billion, up 11% from a year earlier.
Amazon sells those ads to sellers, vendors, publishers, authors and others, as sponsored ads, display ads and video ads. Growth compares with 26% in the quarter before. Amazon says this quarter’s growth, 12% without currency moves, was hit by timing anomalies “primarily related to Prime Day,” and it expects advertising revenue to grow “in the high teens” in the fourth quarter.
Does Amazon pay a dividend?
No. Amazon pays no dividend, and its annual report for 2025 shows none paid. Its release shows no share repurchases for the quarter.
Diluted shares averaged 10,929 million in the quarter against 10,845 million a year earlier; that is the count used for earnings per share. The 0.8% rise spreads Amazon’s profit over slightly more shares.
Amazon held $55.8 billion of cash and cash equivalents and $58.4 billion of marketable securities, investments that can be turned into cash quickly, at the end of the quarter. Together that is $114.2 billion, by our count, against $173.1 billion of long-term debt.
What to watch
- The value Amazon puts on its Anthropic stake, and the detail of its new debt: Amazon’s quarterly report on Form 10-Q, which it filed on the evenings of its last two results releases.
- Anthropic’s offering price and how much of Anthropic Amazon will own once the notes it holds turn into shares: Anthropic’s final IPO prospectus, after an S-1 filed on October 26 that set no price range or share count.
- Whether the holiday quarter lands in Amazon’s range: Amazon’s fourth-quarter release, whose date Amazon has not announced (last year’s came on February 5, 2026).
Our numbers
- Cloud sales gains of $13.0 billion for AWS, $15.6 billion for Google Cloud and $10.8 billion for Azure: sales in the quarter ended September 30, 2026, minus a year earlier.
- AWS earned 63% of Amazon’s operating income: AWS operating income divided by Amazon’s total for the quarter.
- AWS sales gain of $4.5 billion in the third quarter of 2021: $16,110 million minus $11,601 million a year before, from Amazon’s release for that quarter.
- Sales above Amazon’s forecast in four of five quarters, by $0.4 billion to $3.0 billion: each quarter’s sales against the top of the range Amazon gave a quarter earlier.
- Cash and marketable securities of $114.2 billion: $55.8 billion plus $58.4 billion at September 30, 2026, from the balance sheet in the release.
- AWS sales 2.9 times those of the third quarter of 2021: $45,984 million divided by $16,110 million, from Amazon’s releases.
- AWS sales growth by quarter since 2021, low of 12% in mid-2023: each quarter’s AWS sales against the same quarter a year earlier, from Amazon’s releases.
Frequently asked questions
What were Amazon’s earnings for the third quarter of 2026?
Net income was $20.7 billion, or $1.89 per diluted share, on $201.9 billion of sales.
How much did AWS grow?
AWS sales rose 39% from a year earlier to $46.0 billion, against 37% growth the quarter before.
Did Amazon beat its own forecast?
Sales of $201.9 billion landed inside the $197.0 billion to $202.0 billion range Amazon gave. Operating income of $28.1 billion landed above the top of its $22.5 billion to $26.5 billion range.
What is Amazon’s forecast for the fourth quarter?
Sales of $240.0 billion to $247.0 billion and operating income of $28.5 billion to $33.5 billion.
When is Amazon’s next earnings report?
Amazon has not announced the date of its fourth-quarter report yet. Last year’s fourth-quarter results came out on February 5, 2026.
Where can I read Amazon’s full earnings release?
The full release is on StockTitan’s Amazon news page, and the company’s figures over time are on the Amazon financials page.
Sources
- Amazon (AMZN) stock overview on StockTitan
- Amazon financials on StockTitan
- Amazon Q3 2026 results release
- Amazon second quarter 2026 results release
- Amazon first quarter 2026 results release
- Amazon fourth quarter 2025 results release
- Amazon third quarter 2025 results release
- Amazon second quarter 2025 results release
- Amazon third quarter 2021 results release
- Amazon fourth quarter 2021 results release
- Amazon fourth quarter 2022 results release
- Amazon fourth quarter 2023 results release
- Amazon fourth quarter 2024 results release
- Amazon annual report on Form 10-K for 2025
- Alphabet third quarter 2026 results, exhibit 99.1
- Microsoft fiscal 2027 first quarter results, exhibit 99.1
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.