Amazon.com stock weighs AWS surge against 220 billion US dollar spend

Amazon.com Inc. reported stronger cloud momentum but heavier investment pressure with its third-quarter results released on Thursday, October 29, 2026. The company said AWS sales grew 39.3% year over year to 45.984 billion US dollars, the fastest pace in nearly five years. Total net sales rose 12% to 201.944 billion US dollars for the quarter ended September 30.

Amazon.com stock traded at 219.73 euros on Lang & Schwarz at 13:09 CET on Tuesday, November 3, 2026. Investors can follow the real-time quote of Amazon.com stock.

Cloud Momentum Sets The Pace

AWS generated 45.984 billion US dollars in third-quarter sales, compared with 33.006 billion US dollars a year earlier. Segment operating income rose to 17.773 billion US dollars from 11.434 billion US dollars, while the operating margin reached 38.7%. Amazon said AWS now has an annualized revenue run rate of 184 billion US dollars.

Chief Executive Andy Jassy said the company's investment in AWS functionality and infrastructure is working. Amazon expects AWS revenue growth of more than 40% in both 2027 and 2028. The company also said its newer artificial intelligence offerings are gaining traction, with Bedrock usage and its custom chip businesses expanding.

AI Investment Tests Cash Generation

Amazon's consolidated operating income increased to 28.076 billion US dollars from 17.422 billion US dollars, lifting the operating margin to a record 13.9%. Net income fell to 20.685 billion US dollars, or 1.89 US dollars per diluted share, from 21.187 billion US dollars, or 1.95 US dollars, a decline Amazon attributed primarily to a 9.5 billion US dollar pre-tax Anthropic investment gain recorded in the prior-year quarter.

The more immediate investor issue is investment intensity. Free cash flow for the twelve months through September 30 was a 42.357 billion US dollar outflow, compared with a 14.788 billion US dollar inflow a year earlier. Purchases of property and equipment, net of proceeds and incentives, rose to 210.657 billion US dollars over the same period, reflecting spending on artificial intelligence infrastructure.

Amazon continues to expect cash capital expenditures of approximately 220 billion US dollars for 2026. Management said most of the spending supports AWS and artificial intelligence capacity and indicated that capital expenditure will rise meaningfully in 2027. That leaves the shares exposed to a trade-off between accelerating cloud demand and the time required for new infrastructure to produce cash returns.

Holiday Quarter Becomes Next Test

For the fourth quarter, Amazon guided to net sales of 240.0 billion to 247.0 billion US dollars, representing growth of 12% to 16% from the year-earlier period. Operating income is expected to range from 28.5 billion to 33.5 billion US dollars. Amazon also expects advertising revenue growth to return to the high teens after third-quarter timing effects related primarily to Prime Day.

The outlook puts the holiday quarter at the center of the near-term case. AWS growth supports the longer-term earnings opportunity, while retail seasonality, advertising momentum and the pace of infrastructure spending will shape how quickly that opportunity reaches consolidated cash flow. Amazon's latest results provide no simple choice between growth and discipline: the company is pursuing both, but the cost of the expansion is already visible in free cash flow.

The S&P 500 remains the relevant US market benchmark for the broader environment around Amazon.

More company developments and analysis are available in more news and analyses on Amazon.com stock.

Amazon.com Inc. stock facts

• Company: Amazon.com Inc.
• ISIN: US0231351067
• Ticker: AMZN
• Home exchange: NASDAQ
• Lang & Schwarz price: 219.73 euros at 13:09 CET on Tuesday, November 3, 2026