Amazon Q3 revenue accelerates 12% to $201.9 billion as AWS growth accelerates
Key points
- Amazon (NASDAQ:AMZN) reported third-quarter 2026 net sales of $201.9 billion, up 12% year over year, while operating income climbed to $28.1 billion, delivering a record operating margin of 13.9%.
- Amazon Web Services revenue surged 39% to $46 billion, its fastest growth in nearly five years, reaching an annualized revenue run rate of approximately $184 billion.
- Trailing 12-month operating cash flow increased 29% to $168.3 billion, while free cash flow swung to a $42.4 billion outflow amid increased infrastructure spending, primarily for artificial intelligence.
Amazon.com (NASDAQ:AMZN) reported third-quarter 2026 net sales of $201.9 billion, up 12% year over year, as accelerating cloud growth and higher operating income strengthened its financial performance.
Operating income increased to $28.1 billion from $17.4 billion a year earlier, delivering an operating margin of 13.9%, Amazon's highest ever.
Net income, however, declined to $20.7 billion from $21.2 billion, while diluted earnings per share fell to $1.89 from $1.95.
The decline primarily reflected substantial investment gains recorded in the prior-year quarter.
The company's cloud computing business remained a key growth driver.
Amazon Web Services (AWS) revenue increased 39% to $46 billion, while AWS operating income rose to $17.8 billion from $11.4 billion.
The segment's revenue growth was its fastest in nearly five years, reaching an annualized revenue run rate of approximately $184 billion.
North America sales increased 6% to $112.9 billion, with operating income rising to $8.7 billion from $4.8 billion.
International sales grew 5% to $43.1 billion, while operating income increased to $1.6 billion from $1.2 billion.
Chief Executive Officer Andy Jassy said the company's investments in AWS functionality and infrastructure were supporting growth.
He also highlighted improving retail margins and progress in newer businesses, including grocery, pharmacy, Amazon Leo and Zoox.
Meanwhile, trailing 12-month operating cash flow rose 29% to $168.3 billion.
However, free cash flow shifted to an outflow of $42.4 billion, compared with an inflow of $14.8 billion a year earlier.
The decline primarily reflected a $94.8 billion year-over-year increase in net purchases of property and equipment, largely associated with artificial intelligence investments.
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