Amazon Earnings Miss as Cloud Growth Accelerates

Amazon recorded $201.94 billion in sales for the quarter ended September 30, up from $180.17 billion a year earlier. Net income was $20.69 billion, or $1.89 per share, compared with $21.19 billion and $1.95 per share in the same period last year. Both sales and earnings per share fell short of analyst expectations.

Amazon Web Services revenue climbed 39.3% to $45.98 billion, its fastest growth in nearly five years. Chief Executive Andy Jassy said AWS revenue growth was above 39% and pointed to continued investment in infrastructure and features. The company attributed softer results in part to holding Prime Day in the second quarter in many major markets and currency movements.

Advertising revenue increased 12%, below analysts’ expectations. Amazon also said its free cash flow shifted from a positive $14.8 billion to a negative $42.4 billion over the past year, amid heavy investment in AI infrastructure. The company reaffirmed that it expects capital spending of about $220 billion in 2026.

For the holiday quarter, Amazon forecast sales of $240 billion to $247 billion and operating income of $28.5 billion to $33.5 billion. The projected operating income range is below analysts’ estimates. Amazon plans to hire 300,000 seasonal workers in the United States, compared with 250,000 last year. Its shares fell more than 6% in after-hours trading following the results.