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Amazon reported a 12% year-on-year rise in third-quarter net sales to $201.9 billion, driven by accelerated growth in its cloud division, the company said Thursday. Net sales rose from $180.2 billion in the same period of 2025, or 13% excluding a $900 million unfavorable foreign exchange impact.
Operating income surged 61% to $28.1 billion for the July-September period, up from $17.4 billion a year earlier, lifting the operating margin to a record 13.9%.
Amazon Web Services (AWS) net sales jumped 39.3% year-on-year to $46 billion—marking its fastest growth pace in nearly five years and raising its annualized revenue run rate to $184 billion. AWS operating income climbed 56% to $17.8 billion, up from $11.4 billion in the third quarter of 2025.
In retail, North America segment sales grew 6% year-on-year to $112.9 billion, while international sales rose 5% to $43.1 billion, or 8% excluding currency fluctuations.
Net income slipped 2% to $20.7 billion, or $1.89 per diluted share, earnings per share including all potentially dilutive securities, compared with $21.2 billion, or $1.95 per diluted share, a year earlier, primarily reflecting a $9.5 billion pre-tax gain from investments in AI firm Anthropic recorded in the third quarter of 2025.
“Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 and projected revenue growth rates of over 40% both in 2027 and in 2028,” said Andy Jassy, president and chief executive of Amazon.
“There has never been a trillion-dollar revenue business, and we may have two of them in the next 5-10 years,” Jassy added.
For the fourth quarter of 2026, Amazon expects net sales between $240 billion and $247 billion, representing year-on-year growth of 12% to 16%.
Operating income in the final quarter of the year is projected between $28.5 billion and $33.5 billion, compared with $25 billion in the fourth quarter of 2025.
The company reiterated that it expects cash capital expenditures (spending on long-term assets such as data centers and equipment) for full-year 2026 to reach approximately $220 billion, driven primarily by investments in artificial intelligence infrastructure.
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