Amazon Sales Reach $201.94 Billion, While Earnings per Share Fall Short of FactSet Estimates

Key Facts

Amazon reported third-quarter sales of $201.94 billion and earnings per share of $1.89, below analysts’ estimates of $202.2 billion and $1.97 per share, according to FactSet data cited by the Associated Press. The company reported the results on October 29, with sales up from $180.17 billion in the same period a year earlier. Net income, however, fell to $20.69 billion from $21.19 billion, and earnings per share declined from $1.95 to $1.89. Sales growth therefore came alongside a year-over-year decline in profit, as well as results that fell short of market expectations. The company said it expects a cautious fourth fiscal quarter as it enters the seasonal shopping period, an important milestone for year-end results.

Sales came within the range Amazon had previously set for the third quarter: revenue of between $197 billion and $202 billion, and year-over-year growth of between 9% and 12%, according to its filing with the U.S. Securities and Exchange Commission. Actual sales were $201.94 billion, near the upper end of the stated range, but below FactSet’s estimate of $202.2 billion. The comparison shows the company achieved the sales level indicated by its earlier guidance, while analysts’ expectations were slightly higher. Net income and earnings per share, meanwhile, fell from the same period last year, according to figures reported by the Associated Press. The results put operating performance in a dual context: sales expanded, but that did not prevent a decline in profit or a miss against expectations.

By contrast, cloud computing unit AWS continued to accelerate its growth, with sales rising 39.3% in the quarter ended September 30, compared with growth of 37% in the previous quarter. Amazon said this was the unit’s fastest growth rate in about five years, according to the Associated Press. AWS’s performance was a clear bright spot in the quarterly report, as its sales growth accelerated even while total sales and earnings per share failed to match FactSet estimates. CEO Andy Jassy said in an interview published on October 23 that most of AWS’s computing capacity was booked through 2027, with significant commitments extending into 2028, Reuters reported. That puts cloud growth at the heart of the results story, alongside the company’s ability to provide computing resources to meet the demand Jassy described.

Amazon raised its 2026 capital expenditure forecast in July by 10% to $220 billion, citing strong demand and a shortage of the computing capacity needed to serve customers, according to a Reuters report published by Investing.com. Jassy said demand had remained strong to the point that the company did not have enough computing capacity to serve customers, despite raising its spending forecast. The remarks provide context for the increased investment that accompanied AWS’s acceleration, while, according to Jassy’s later comments, most of the unit’s capacity is booked through 2027, with significant commitments in 2028. These figures show the scale of the resources the company is committing to meet demand for its cloud services. Earlier in October, the company also said its plan included hiring 300,000 seasonal workers in the United States for the shopping season, compared with 250,000 the previous year, according to the Associated Press.

Amazon shares fell more than 6% in after-hours trading when the results were announced, according to the Associated Press, as investors focused on the company’s core business. The stock closed at $246.22 on October 29, according to EL7 data; this is the daily closing price, not the session’s trading range. The reaction followed sales and earnings per share falling short of FactSet estimates, despite revenue growth from a year earlier and accelerating AWS sales. According to the Associated Press, the company offered only a cautious outlook for the fourth fiscal quarter, with no numerical details in the reported statement. With the shopping season approaching, Amazon said seasonal hiring in the United States would rise to 300,000 workers from 250,000 the previous year. The focus now extends to the fourth quarter, while Jassy said most AWS capacity is booked through 2027 and significant commitments extend into 2028.