39.3% AWS Growth Accelerates Amazon Revenue, While Spending Weighs on Shares
Key Facts
Amazon's AWS sales grew 39.3% in the third quarter to $46 billion, the fastest pace in nearly five years, according to the Associated Press, citing the company. That followed growth of 37% in the second quarter, pointing to accelerating performance at the cloud computing unit. But Amazon shares fell as much as 7% in extended trading after the results were announced. The agency attributed investors' reaction to concerns that AI investments would drain cash. The stock closed at $243.79 on October 29, according to EL7 data.
Lilly CEO David Ricks said the company exceeded its previous expectations for the quarter, enabling it to raise its annual estimates. The company lifted its 2026 revenue forecast to a range of $91–92 billion, from $85–87 billion, and raised its performance margin range to 52.0%–52.5% from 49.0%–50.5%. By contrast, it cut its adjusted earnings-per-share forecast to $35.00–36.00, from $35.50–36.50, after recording expenses related to acquired in-process research and development from business development deals. Ricks linked revenue growth to global demand for Mounjaro and Zepbound, alongside the launch of Foundayo and broader U.S. coverage for obesity treatment. The revisions reflect a divergence between improved sales and margin outlooks and the impact of expenses on adjusted earnings.
Third-quarter results showed strong sales of the company's two flagship drugs: global Mounjaro revenue reached $10.723 billion, up 65% year over year. Zepbound revenue was about $5.352 billion, up 49% from the year-earlier period. In afternoon trading on October 29, Lilly shares rose more than 6% to $1,369.79, after hitting a record $1,408 during the session, according to Reuters. EL7 data showed the stock closing at $1,373.7 that day. The company said in its statement that strong demand for the two treatments was among the factors driving revenue growth and lifting its annual outlook.
In solar energy, First Solar's third-quarter sales fell 23% to $1.23 billion, as the volume of modules sold to third parties declined, according to the company's statement published through Nasdaq. Despite lower sales, diluted net income per share rose 25% year over year to $5.30. The company announced on October 29 authorization for a $500 million share repurchase program. The results highlight a divergence between declining quarterly sales and improved earnings per share, while the accompanying statement gave no additional reason for the drop in the volume of modules sold. The three companies therefore presented mixed results: accelerating cloud growth at Amazon, Lilly raising its revenue outlook while cutting its earnings-per-share forecast, and First Solar reporting lower sales despite higher earnings per share.