Amazon.com announces third quarter results

Summary

• Amazon reported third quarter 2026 net sales of $201.9 billion, a 12% increase from $180.2 billion in the same period in 2025.
• Operating income reached $28.1 billion with an operating margin of 13.9%, marking the company's highest operating margin ever.
• AWS net sales grew 39% year-over-year to $46.0 billion, achieving a $184 billion annualized revenue run rate.
• North America segment sales increased 6% to $112.9 billion, while International segment sales rose 5% to $43.1 billion.
• North America segment operating income was $8.7 billion, International segment operating income was $1.6 billion, and AWS segment operating income was $17.8 billion.
• Net income decreased to $20.7 billion or $1.89 per diluted share, compared to $21.2 billion or $1.95 per diluted share in the third quarter of 2025.
• Operating cash flow increased 29% to $168.3 billion for the trailing twelve months.
• Free cash flow decreased to an outflow of $42.4 billion for the trailing twelve months, driven by a $94.8 billion increase in property \& equipment purchases related to artificial intelligence investments.
• Fourth quarter 2026 net sales are expected to range between $240.0 billion and $247.0 billion.
• Fourth quarter 2026 operating income is projected to be between $28.5 billion and $33.5 billion.
• The company expects 2026 cash capital expenditures to be approximately $220 billion.
• Advertising revenue grew 12% year-over-year in the third quarter excluding foreign exchange changes.