The quick read: • Amazon released third-quarter 2026 results after the close on Thu Oct 29, 2026. Shares fell about 7% in after-hours trading, after closing the regular session down 4.3% at $243.79 (The Elec). • Free cash flow was an outflow of $42.4 billion for the 12 months to Sept. 30, against an inflow of $14.8 billion a year earlier (Amazon). • Amazon says the swing was driven primarily by a $94.8 billion year-over-year increase in purchases of property and equipment, and that the increase "primarily reflects investments in artificial intelligence" (Amazon). • Purchases of property and equipment were about $77.3 billion in the quarter alone. Amazon expects about $220 billion in cash capital spending in 2026, and Andy Jassy signaled more in 2027 with no number given (Amazon, The Elec, Coinpaper). • AWS sales grew 39% to $46.0 billion. Operating income rose to $28.1 billion. Net income was $20.7 billion, down from $21.2 billion a year earlier, which included $9.5 billion of Anthropic investment gains (Amazon). • Fourth-quarter sales guidance is $240 billion to $247 billion (Amazon).
“Amazon Stock Fell About 7% After Amazon Burned $42.4 Billion in Cash, Mostly on AI”
who’s making the noise
Amazon third-quarter 2026 results, released after the close Thu Oct 29, 2026. Reported by The Elec and Coinpaper (Oct 30).
our take
Amazon's defense is real: the business is profitable and the cloud is growing at its fastest pace in nearly five years. Andy Jassy: "There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years." But a year ago Amazon was $14.8 billion ahead on cash. Now it is $42.4 billion behind, and in its own words the reason is artificial intelligence. A company that made $20.7 billion in one quarter is still spending faster than it earns, and says next year it spends more. For a small business this is not a stock tip. It is a vendor signal. AWS sits under a large share of the tools you use, and the companies building AI are paying for it ahead of the revenue. Know which of your tools run on whose cloud, and what a price change would cost you. What to watch: Amazon's 2027 spending number, and whether AWS pricing for AI services moves.