Amazon reported booming cloud revenue but otherwise missed expectations

Amazon reported its third-quarter net connected Thursday and missed analysts’ expectations for some its full gross and net per share. There were different murky numbers successful the study that frightened investors, too, including however overmuch currency the institution is burning through.

But the study did person a big, agleam spot: its unreality unit, Amazon Web Services, bushed gross expectations and grew a whopping 39% compared to the year-ago quarter.

Here are the numbers:

• Net income accrued 12% to $201.9 billion. But analysts were expecting $202.2 billion, according to FactSet.
• Fully diluted net per stock were $1.89. Analysts were expecting $1.97.
• AWS income reached $45.98 billion. Analysts were expecting $45.29 billion. In addition, Amazon said that AWS operating income grew to $17.8 billion, compared with $11.4 cardinal successful the 3rd 4th of 2025.

But here’s the biggest ouch of the report: Free currency travel fell to a antagonistic of $42.4 cardinal for the trailing 12 months — meaning the institution was spending acold much currency than it generated. This compares to affirmative escaped currency travel of $14.8 cardinal for the trailing 12 months ended September 30, 2025.

The large spending was driven mostly by Amazon’s investments successful AI, the institution said. With 1 4th near successful its fiscal year, Amazon reiterated that it inactive expects to extremity its 2026 with currency superior expenditures of astir $220 billion.

To enactment that successful perspective, the institution forecast fourth-quarter nett income of betwixt $240 cardinal and $247 billion. The 4th fourth is typically a retainer’s biggest, acknowledgment to the vacation buying season. That means Amazon expects to walk astir arsenic overmuch connected superior expenditures, mostly for AI, implicit the afloat twelvemonth arsenic it expects to bring successful from income successful the 4th fourth alone.