AMZN 10-Q filed 2026-10-30 | Key takeaways
AMZN filed its 10-Q; the most relevant disclosure change is expanded Investments in Anthropic and OpenAI: Amazon invested $50.0 billion in OpenAI Series C Preferred Stock during nine months ended September 30, 2026, including $21.3 billion in Q3 2026, and $10.0 billion in Anthropic nonvoting preferred stock. Equity investments in private companies increased to $14.
Forward guidance
Key takeaways
Amazon invested $63.8 billion in acquisitions and investments during nine months ended September 30, 2026, including $50.0 billion in OpenAI Series C Preferred Stock and $10.0 billion in Anthropic
Amazon announced acquisition of Globalstar for approximately $10.9 billion including debt, expected to close in 2027 subject to regulatory approvals
Long-term debt increased to $173.1 billion from $65.6 billion at December 31, 2025, driven by $37.0 billion March 2026 notes issuance and $25.0 billion July 2026 notes issuance
Equity investments in private companies increased to $143.7 billion from $16.2 billion, primarily reflecting Anthropic and OpenAI investments
Performance obligations for contracts exceeding one year estimated at $578 billion as of September 30, 2026, up from $496 billion as of June 30, 2026
Key metrics
Disclosure changes
- Investments in Anthropic and OpenAI
Amazon invested $50.0 billion in OpenAI Series C Preferred Stock during nine months ended September 30, 2026, including $21.3 billion in Q3 2026, and $10.0 billion in Anthropic nonvoting preferred stock. Equity investments in private companies increased to $143.7 billion from $16.2 billion at December 31, 2025.
Significant AI investment expansion; material impact on balance sheet valuation and future earnings volatility from mark-to-market adjustments - Anthropic convertible notes and preferred stock
Anthropic convertible notes fair value increased to $146.2 billion with $140.3 billion unrealized gain in AOCL. Nonvoting preferred stock carrying value increased to $92.5 billion. Q2 2026 included $5.0 billion Anthropic Series G investment and $5.0 billion Series H investment, with $15.0 billion financing facility available.
Large mark-to-market gains/losses flowing through other income and AOCL; ownership cap subject to waiver - Long-term debt and notes issuances
Long-term debt increased to $173.1 billion from $65.6 billion at December 31, 2025. New issuances include March 2026 $37.0 billion notes, July 2026 $25.0 billion notes, September 2026 £4.3 billion Sterling-denominated notes, and $17.5 billion term loan drawn in September 2026.
Significant increase in leverage; interest expense increased to $3.8 billion YTD from $1.6 billion - AWS OpenAI commercial arrangement
Q1 2026: AWS and OpenAI expanded existing $38.0 billion multi-year commitment by $100.0 billion over 8 years, including contractual obligations related to AWS chip performance. Total OpenAI commitment reached $138.0 billion.
Major cloud commitment; performance obligations now estimated at $578 billion - Performance obligations
Performance obligations for contracts with original terms exceeding one year estimated at $578 billion as of September 30, 2026, up from $496 billion as of June 30, 2026. Weighted-average remaining contract life is 6.1 years.
Future revenue visibility for AWS cloud services - Energy contracts derivative accounting
Energy contract quantities subject to derivative accounting increased to approximately 690 million megawatt-hours with weighted-average remaining duration of approximately 18 years as of September 30, 2026, up from 270 million MWh and 15 years as of June 30, 2026.
Level 3 fair value measurements with significant management judgment; fair value assets increased to $785 million from $705 million
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