Amazon Q3 Earnings: AWS Growth Surges Amidst Revenue Miss and High AI Capital Expenditures
Amazon reported third-quarter results that missed analyst expectations for both total revenue ($201.9 billion vs. $202.2 billion expected) and earnings per share ($1.89 vs. $1.97 expected). Despite the top and bottom-line misses, Amazon Web Services (AWS) emerged as a significant growth driver, with sales reaching $45.98 billion—surpassing expectations—and growing 39% year-over-year. Investor concern centered on a sharp decline in free cash flow, which fell to negative $42.4 billion for the trailing twelve months, compared to a positive $14.8 billion in the previous period. This massive cash burn is attributed to aggressive investments in artificial intelligence infrastructure. Amazon signaled continued heavy spending, forecasting capital expenditures of approximately $220 billion for 2026.
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Topics: AI Investment Amazon AWS Cloud Computing Earnings Miss Free Cash Flow
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