Amazon reported Q3 2026 results after the US market closed on October 29: AWS revenue rose 39% to $46.0 billion, its fastest growth in nearly five years, and operating margin hit a record 13.9%. But EAmazon reported Q3 2026 results after the US market closed on October 29: AWS revenue rose 39% to $46.0 billion, its fastest growth in nearly five years, and operating margin hit a record 13.9%. But E
Why Did Amazon (AMZN) Stock Fall After Q3 2026 Earnings? AWS Grew 39% but Q4 Guidance Missed
Amazon reported Q3 2026 results after the US market closed on October 29: AWS revenue rose 39% to $46.0 billion, its fastest growth in nearly five years, and operating margin hit a record 13.9%. But EPS of $1.89 missed estimates, Q4 guidance came in below forecasts and quarterly capital spending jumped to $77.3 billion, so AMZN fell as much as 7% after hours. Trailing 12-month free cash flow turned to an outflow of $42.4 billion, on the same day Alphabet lost 12% over similar cash-flow worries.
What did Amazon report for Q3 2026?
According to the Amazon Q3 2026 release:
- Net sales: $201.9 billion, up 12% from a year earlier, or 13% excluding currency. Amazon said growth would have been about 4 percentage points higher if Prime Day had not moved into Q2 this year
- AWS: $46.0 billion, up 39%, with operating income of $17.8 billion and an operating margin of 38.7%. AWS is now on a $184 billion annual revenue run rate
- North America: $112.9 billion, up 6%, with operating income of $8.7 billion
- International: $43.1 billion, up 5%, or 8% excluding currency, with operating income of $1.6 billion
- Advertising: $19.6 billion, up 11%, or 12% excluding currency
- Operating income: $28.1 billion, up 61% from $17.4 billion a year earlier. The 13.9% operating margin is Amazon's highest ever
- Net income: $20.7 billion, or $1.89 per diluted share, down from $21.2 billion, or $1.95, a year earlier. The year-ago quarter included $9.5 billion of pre-tax gains on Amazon's investment in Anthropic
- Free cash flow: an outflow of $42.4 billion over the past 12 months, against an inflow of $14.8 billion a year earlier, as purchases of property and equipment rose $94.8 billion
Did Amazon beat earnings estimates?
Mostly no. EPS of $1.89 missed the $1.96 LSEG consensus, and revenue of $201.9 billion was just below the $202.31 billion analysts expected, according to CNBC. Two numbers beat:
- AWS: 39% growth to $46.0 billion, against an LSEG estimate of 38.2% growth to $45.61 billion, according to Reuters
- Operating income: $28.1 billion, about $1.8 billion above the FactSet consensus, according to CNBC Investing Club. It also cleared the top of Amazon's own $22.5 billion to $26.5 billion guidance
Advertising was the weak spot. Growth of 12% excluding currency fell short of the 18% LSEG estimate, Amazon's first advertising miss in seven quarters, Reuters reported. Amazon blamed timing effects, mainly Prime Day.
Why did Amazon stock fall after earnings?
AMZN closed the regular session at $243.79, down 4.3%, after Alphabet fell 12% in its worst one-day drop on record. After the results, Amazon fell as much as 7% in extended trading, according to Reuters. Three things weighed on the stock:
- Q4 guidance: the $243.5 billion midpoint of the sales range was below the $244.51 billion LSEG estimate, and the $31 billion operating income midpoint was below the roughly $33 billion consensus
- Capex: purchases of property and equipment reached $77.26 billion in Q3, about $20 billion more than analysts expected, Reuters reported. In Q2 the figure was $53.1 billion
- Cash flow: trailing free cash flow went from an outflow of $7.6 billion last quarter to an outflow of $42.4 billion
The reaction is the opposite of July. After the Q2 report, AMZN rose 15.32% the next day, to $271.58, when AWS growth accelerated to 37%. This time AWS grew faster, but investors focused on spending and guidance, the same concerns that hit Alphabet earlier that day. Our Amazon Q3 2026 earnings preview named AWS growth and the Q4 operating income outlook as the two numbers most likely to move the stock. AWS beat, but the Q4 outlook fell short.
What is Amazon's Q4 2026 guidance?
- Net sales: $240.0 billion to $247.0 billion, up 12% to 16%, including a currency headwind of about 0.6 percentage points
- Operating income: $28.5 billion to $33.5 billion, against $25.0 billion in Q4 2025
- Advertising: growth expected to return to the high teens
- Capex: about $220 billion for 2026, unchanged
The operating income range includes most of the costs of Amazon Leo, the satellite internet service, which starts initial service this year. CFO Brian Olsavsky said on the earnings call that Amazon will begin capitalizing some Leo production and launch costs in Q1 2027.
Amazon spent $172.2 billion on property and equipment, net of proceeds and incentives, in the first nine months of 2026. Keeping the full-year figure at about $220 billion implies roughly $48 billion in Q4, well below Q3 (our calculation from the release). Olsavsky said Amazon expects to spend meaningfully more in 2027.
What did Amazon say about AWS growth and the backlog?
- Growth outlook: CEO Andy Jassy said in the release that AWS revenue growth is projected to exceed 40% in both 2027 and 2028
- Backlog: AWS backlog reached $578 billion, growing at a triple-digit rate from a year earlier, Jassy said on the call
- Custom chips: revenue commitments for Graviton and Trainium each rose more than 20 times from a year earlier, and Amazon plans to sell Trainium chips to outside customers late in 2027
- New customers: AWS signed agreements with Meta, NVIDIA, OpenAI, Salesforce and Oracle, among others, and Fortune 500 spending on its Bedrock AI service rose nearly 7 times
How did AMZNSTOCK_USDT trade on MEXC?
MEXC's Amazon perpetual futures contract, AMZNSTOCK_USDT (1 contract = 0.01 AMZN), trades 24/7, so it priced the results while Nasdaq was closed. The contract stood at 244.30 USDT at the 4:00 p.m. ET close, near AMZN's $243.79 close. In the first hour after the release it dropped as low as 214.93 USDT, 12.0% below the close, and ended the hour at 228.17 USDT, down 6.6%. Volume in that hour was 7.7 times the hour before.
The contract rose to 232.04 USDT during the earnings call, then drifted lower. At 9:03 p.m. ET (9:03 a.m. Beijing time on October 30), it was at 224.66 USDT, down 8.0% from the close (MEXC).
The contract did not hold its 214.93 low and closed that first hour 6.6% down. Prices on a 24/7 contract can swing sharply when the US market is closed, because fewer orders are on the book. You can trade the move on the AMZNSTOCK_USDT futures page, and our guide on how to trade stock futures on MEXC covers margin and liquidation.
How does AWS compare with Azure and Google Cloud this quarter?
All three cloud providers reported this week. AWS is still the largest by revenue but grew the slowest:
- AWS: $46.0 billion, up 39%, with a $578 billion backlog
- Microsoft Azure: $33.2 billion, up 48%, with a $677 billion commercial backlog. Read our Microsoft Q1 FY2027 earnings article
- Google Cloud: $30.71 billion, up 103%, with a $561 billion backlog. Read our Alphabet Q3 2026 earnings article
Microsoft rose after its report and lowered its capex forecast, while Alphabet and Amazon kept theirs and both fell. For past reactions and the next report date, see our Amazon earnings date page.
FAQ
When did Amazon report Q3 2026 earnings?
Amazon reported Q3 2026 results after the US market close on Thursday, October 29, 2026, and held its earnings call at 5:00 p.m. ET, which is 5:00 a.m. on Friday, October 30, in Beijing, Hong Kong and Singapore.
Did Amazon beat Q3 2026 earnings expectations?
No. EPS of $1.89 missed the $1.96 consensus and revenue of $201.9 billion was slightly below the $202.31 billion estimate. AWS revenue of $46.0 billion and operating income of $28.1 billion both beat forecasts.
Why did Amazon stock drop after Q3 2026 earnings?
Amazon fell as much as 7% after hours because Q4 sales and operating income guidance came in below estimates, Q3 capex jumped to $77.3 billion and trailing free cash flow turned to an outflow of $42.4 billion.
How much did AWS grow in Q3 2026?
AWS revenue grew 39% to $46.0 billion, its fastest growth in nearly five years. Its backlog reached $578 billion, and Amazon expects AWS growth above 40% in 2027 and 2028.
What is Amazon's Q4 2026 guidance?
Amazon expects Q4 2026 net sales of $240.0 billion to $247.0 billion, up 12% to 16%, and operating income of $28.5 billion to $33.5 billion. It still expects about $220 billion of capex in 2026.
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The articles shared on this page are sourced from public platforms and are provided for reference only. They do not represent the position or views of MEXC. All rights belong to James Mitchell. If you believe any content infringes upon the rights of a third party, please contact [email protected] for prompt removal. MEXC does not guarantee the accuracy, completeness, or timeliness of any content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be interpreted as a recommendation or endorsement by MEXC. For expert insights and in-depth analysis, visit MEXC Learn.
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