Amazon Reports Q3 2026 Results: Record 13.9% Operating Margin and 39% AWS Growth

Amazon.com, Inc. Q3 2026 Financial Results Summary

Amazon.com, Inc. filed Form 8-K under Item 2.02 furnishing its third quarter 2026 financial results for the period ended September 30, 2026.

Key Financial Metrics

• Net Sales: $201.9 billion, up 12% year-over-year compared to $180.2 billion in Q3 2025 (up 13% excluding an unfavorable foreign exchange impact of $0.9 billion). Growth was affected by Prime Day shifting into Q2 2026 (whereas it occurred in Q3 2025); excluding this calendar shift, Q3 YoY growth would have been approximately 400 basis points higher.
• Operating Income: $28.1 billion (13.9% operating margin, marking the highest operating margin in Amazon's history), up 61.5% from $17.4 billion in Q3 2025.
• Net Income: $20.7 billion, or $1.89 per diluted share, compared to $21.2 billion, or $1.95 per diluted share, in Q3 2025. The decrease was primarily driven by a high-base comparison involving a $9.5 billion pre-tax gain on Anthropic investments recognized in non-operating income during Q3 2025.
• Operating Cash Flow (TTM): $168.3 billion, up 29% from $130.7 billion for the trailing twelve months ended September 30, 2025.
• Free Cash Flow (TTM): Outflow of $42.4 billion, compared to an inflow of $14.8 billion in TTM Q3 2025, driven by a $94.8 billion increase in net capital expenditures reflecting aggressive AI infrastructure scaling.

Segment Breakdown

• AWS: Sales reached $46.0 billion (+39% YoY), representing an annualized run rate of $184 billion. Operating income surged to $17.8 billion from $11.4 billion in Q3 2025.
• North America: Sales rose 6% YoY to $112.9 billion, with operating income increasing to $8.7 billion from $4.8 billion in Q3 2025.
• International: Sales increased 5% YoY (8% FX-neutral) to $43.1 billion, with operating income rising to $1.6 billion from $1.2 billion in Q3 2025.

Q4 2026 Guidance

• Net Sales: Expected between $240.0 billion and $247.0 billion (+12% to +16% YoY growth), accounting for an anticipated 60 basis point FX headwind.
• Operating Income: Projected between $28.5 billion and $33.5 billion, compared to $25.0 billion in Q4 2025.
• Capital Expenditures: Reaffirmed full-year 2026 cash CapEx expectation of approximately $220 billion.