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NewsWPLG Local 10October 29, 2026Miami-Dade County

Amazon reports third-quarter financial results and issues cautious fourth-quarter sales outlook

Photo: WPLG Local 10

Amazon reported third-quarter net sales of $201.94 billion and net income of $20.69 billion, missing Wall Street expectations while posting a 39.3% increase in cloud computing sales. The company issued a cautious sales outlook for the fourth quarter, projecting net sales between $240 billion and $247 billion, as heavy investments in artificial intelligence reduce free cash flow.

TechnologyBusinessCloud ComputingArtificial IntelligenceRetail
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Why It Matters

Investors drove Amazon shares down 7% in after-market trading following disclosures that will reach $220 billion this year, primarily for artificial intelligence infrastructure.

Key Facts

  • Amazon reported fiscal third-quarter net sales of $201.94 billion, representing a 12% increase compared to the same period last year.
  • Net income for the quarter was $20.69 billion, or $1.89 per share, compared to $21.19 billion, or $1.95 per share, in the year-ago period.
  • Sales in Amazon Web Services rose 39.3% to $46 billion during the quarter, marking the fastest growth rate in nearly five years.
  • Amazon CEO Andy Jassy expects total capital spending to reach $220 billion this year, driven largely by artificial intelligence data center construction.
  • Free cash flow fell to $42.4 billion for the trailing 12 months due to heavy investments in artificial intelligence.
  • For the fourth quarter, Amazon projects net sales to fall between $240 billion and $247 billion.
  • Amazon plans to invest more than $1 billion over the next five years into communities that host its data centers to support education, job training, and resource preservation.
  • The timing shift of Prime Day from the third quarter last year to the second quarter this year reduced reported year-over-year sales growth by approximately 400 basis points.

Who's Mentioned

OrganizationWalmart“Previously ranked as the nation's largest company by revenue.”OrganizationGoogle“Subsidiary of Alphabet.”locationNew York“Dateline for the news article.”OrganizationAlphabet“Parent company of Google and YouTube.”OrganizationYouTube“Subsidiary of Alphabet.”locationSeattle“Location of Amazon's headquarters.”locationU.S.“Country where Prime Day timing shifted.”PersonAndy Jassy“Amazon CEO.”OrganizationAmazon Web Services“Amazon's cloud computing unit.”OrganizationFactSet“Financial data and software company.”OrganizationAmazon“Tech giant reporting quarterly earnings.”