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Reports Q3 $1.89 adj v $2.01e, Rev $201.9B v $202.5Be
- Guides Q4 Rev $240.0-247.0B v $245.6Be, operating income $28.5-33.5B v $33.2Be
- Affirms FY26 Capex ~$220B
- This guidance anticipates an unfavorable impact of approximately 60 basis points from foreign exchange rates. Advertising revenue grew 12% year-over-year excluding changes in foreign exchange rates in the third quarter 2026 impacted by timing anomalies primarily related to Prime Day (and a couple other timing factors). We expect year-over-year advertising revenue to grow in the high teens in fourth quarter 2026.
- Operating income $28.1B v $17.4B y/y
- Op margin percent of WW net sales 13.9% v 13.7% q/q
- North America unit margin +6.0% v +11% y/y
- Net Service sales $126.6B v $106.1B y/y
- Advertising services Rev $19.6B +11% y/y
- AWS net sales $46.0B v $45.3Be, +39.3% y/y
- AWS op income $17.8B v $11.4B y/y; Operating Margin 38.7% v 34.6% y/y
- Free cash flow decreased to an outflow of $42.4 billion for the trailing twelve months, driven primarily by a year-over-year increase of $94.8 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow inflow of $14.8 billion for the trailing twelve months ended September 30, 2025.
- Comments: President and CEO: "Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 ($184 billion revenue run rate) and projected revenue growth rates of over 40% both in 2027 and in 2028."
- Affirms FY26 Capex ~$220B
- This guidance anticipates an unfavorable impact of approximately 60 basis points from foreign exchange rates. Advertising revenue grew 12% year-over-year excluding changes in foreign exchange rates in the third quarter 2026 impacted by timing anomalies primarily related to Prime Day (and a couple other timing factors). We expect year-over-year advertising revenue to grow in the high teens in fourth quarter 2026.
- Operating income $28.1B v $17.4B y/y
- Op margin percent of WW net sales 13.9% v 13.7% q/q
- North America unit margin +6.0% v +11% y/y
- Net Service sales $126.6B v $106.1B y/y
- Advertising services Rev $19.6B +11% y/y
- AWS net sales $46.0B v $45.3Be, +39.3% y/y
- AWS op income $17.8B v $11.4B y/y; Operating Margin 38.7% v 34.6% y/y
- Free cash flow decreased to an outflow of $42.4 billion for the trailing twelve months, driven primarily by a year-over-year increase of $94.8 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow inflow of $14.8 billion for the trailing twelve months ended September 30, 2025.
- Comments: President and CEO: "Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 ($184 billion revenue run rate) and projected revenue growth rates of over 40% both in 2027 and in 2028."