Amazon Revenues Up 12 Percent to $202 Billion

Amazon reports that it earned a net income of $21.1 billion on revenues of $202 billion in the quarter ending September 30, 2026. Those figures represent a decline of 2.4 percent and a gain of 12 percent, respectively, year-over-year (YOY).

“Our AWS investment in functionality and infrastructure is working,” Amazon president and CEO Andy Jassy said. “Our broader selection and speedier delivery are helping us capture more retail market segment share with improving margins, and our newer businesses, ranging from Grocery to Pharmacy to Amazon Leo to Zoox are progressing encouragingly. There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years.”

Amazon Web Services is on a tear, with $46 billion in revenues in the quarter, a gain of 39 percent YOY. But Amazon says it still plans to spend $220 billion this year on capital expenditures related to its AI buildout. It spent $77 billion in this quarter alone on property and equipment, far more than expected. And all the spending delivered a $7.6 billion negative free cash flow in the quarter and $42.4 billion for the year.

All that and missing its profit and sales targets triggered an 11 percent decrease in the value of Amazon’s stock.