AMZN Q3 2026 Net sales $201.9 billion, Beat Guidance by +$2.4 billion

Operating income: Q3 2026 operating income of $28.1 billion beat prior guidance midpoint of $24.5 billion by $3.6 billion (15% variance), with 13.9% operating margin representing Amazon's highest ever.

AWS growth: AWS segment revenue increased 39% year-over-year to $46.0 billion, its fastest growth in nearly five years, reaching a $184 billion annualized revenue run rate with projected growth rates over 40% for 2027 and 2028.

Revenue performance: Net sales of $201.9 billion beat prior guidance range of $197.0-$202.0 billion; excluding the $0.9 billion unfavorable FX impact, net sales grew 13% year-over-year.

Segment breakdown: North America net sales $112.9 billion (+6% YoY) with $8.7 billion operating income; International $43.1 billion (+5% YoY, +8% ex-FX) with $1.6 billion operating income.

Net income decline: Net income decreased to $20.7 billion from $21.2 billion in Q3 2025, driven primarily by $9.5 billion pre-tax gains from Anthropic investments included in Q3 2025 non-operating income.

Free cash flow: Trailing twelve-month free cash flow was negative $42.4 billion, down from positive $14.8 billion, driven by $94.8 billion year-over-year increase in purchases of property and equipment primarily for AI investments.

Q4 2026 guidance: Net sales expected $240.0-$247.0 billion (12-16% YoY growth); operating income expected $28.5-$33.5 billion versus $25.0 billion in Q4 2025.