AWS Growth Reaches 39% to $46 Billion, Beating Third-Quarter Estimates
Key Facts
Revenue at Amazon’s AWS cloud computing unit rose 39% to $46 billion in the third quarter ended in September 2026, topping analysts’ estimates for growth of 38.2% and revenue of $45.61 billion, according to data compiled by LSEG and reported by Reuters. Growth accelerated from 37% in the second quarter, signaling improving momentum in the cloud business. Chief Executive Andy Jassy said the company’s investments in "AWS capacity and infrastructure are working." The performance comes as Amazon expands its technology infrastructure tied to artificial intelligence. But strong cloud results coincided with a fourth-quarter sales forecast below analysts’ average estimate.
Amazon said it expects fourth-quarter sales of between $240 billion and $247 billion, equivalent to annual growth of between 12% and 16%. The top end of the range is below analysts’ average estimate of $244.16 billion, according to the Associated Press. The forecast is the next indication of the pace of sales the company expects in the fourth quarter of 2026. The range follows accelerating AWS growth but puts group sales up against market expectations for the same period. The evidence did not provide a separate figure for actual third-quarter sales that would allow a direct comparison with analysts’ estimate of $202.2 billion.
The expansion has been accompanied by plans for major capital spending; Jassy said Amazon expects to spend $220 billion on capital expenditures during 2026, most of it on building AI data centers. He also expects AWS sales to rise 40% in each of the next two years. The remarks show how the company links infrastructure expansion to continued growth in its cloud computing business. They also put the scale of cash investment at the forefront of investors’ scrutiny of the company’s performance, alongside revenue. The plans focus on spending in 2026 and AWS growth expectations for 2027 and 2028.
Concerns about the cost of investment were reflected in the stock’s trading after the results were announced; Amazon shares fell 7% in after-hours trading on October 29, 2026, according to the Associated Press. The news agency said investors focused on core operations and voiced concerns about cash burn from AI investments. The move puts the market reaction alongside AWS’s results, which beat growth and revenue expectations. Analysts had also forecast third-quarter diluted earnings of $1.97 a share and sales of $202.2 billion, according to FactSet, as reported by the agency. The evidence does not include actual third-quarter earnings or total sales, so it does not establish how far the results differed from those estimates.
The quarterly comparison shows AWS growth accelerating from 37% in the second quarter to 39% in the third quarter, while the unit’s growth for the latest period was estimated at 38.2% before the results were announced. Actual revenue was $46 billion, against an estimate of $45.61 billion, according to data reported by Reuters. This highlights the unit’s performance against expectations for the same period, not just the comparison with the previous quarter. By contrast, the fourth-quarter sales range points to annual growth of between 12% and 16% for the group as a whole. The next milestone is the fourth-quarter results, which will measure sales against the range Amazon announced.