Amazon Q3 Earnings Report Shows Record Operating Margins and Accelerating AWS Growth
Amazon (AMZN) reported strong third-quarter results, highlighted by its cloud computing unit, Amazon Web Services (AWS), which saw revenue climb 39% year-over-year to $46.0 billion. This marks the sixth consecutive quarter of accelerating growth for AWS. The company also achieved a record operating margin of 13.9%, with total operating income reaching $28.1 billion, surpassing management's previous guidance. Despite the robust profitability, Amazon is facing significant capital expenditure requirements driven by AI infrastructure investments. Cash capital expenditures reached $75.9 billion in Q3 alone, contributing to a negative free cash flow of $42.4 billion over the last 12 months. Management expects total capital spending to reach approximately $220 billion for 2026, with even higher levels anticipated in 2027.
Tickers: $AMZN
Topics: AWS Revenue Growth Capital Expenditure Cloud Computing Operating Margins
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Part of the story Amazon and Target Diverge in Revenue Growth Amid AI Boom and Consumer Spending Shifts (3 articles)