Amazon Q3 2026 earnings miss sparks share drop then rebound after Phillips Securities upgrade
Amazon reported Q3 2026 revenue of $201.9 billion, below consensus, and earnings of $1.89 per share, also missing estimates. AWS revenue rose 39.3% YoY to $46 billion, delivering $17.8 billion of operating income. The company kept its full‑year capital spending target at $220 billion, while free cash flow over the trailing twelve months turned to a $42.4 billion outflow. After the initial after‑hours sell‑off, Phillips Securities upgraded the stock to Buy and raised its price target to $330, prompting a 4‑5% rally.
Why it matters
The upgrade and higher price target from Phillips Securities suggest analysts see the strong AWS performance offsetting cash‑flow pressure, which could support the stock’s upside. However, the continued $220 billion capex plan and negative free cash flow highlight ongoing cash‑burn risks for investors.
Key facts
- 1Q3 2026 revenue was $201.9 billion. 247wallst.com
- 2Q3 earnings per share were $1.89. 247wallst.com
- 3AWS revenue grew 39.3% YoY to $46 billion. finance.yahoo.com
- 4AWS operating income was $17.8 billion. finance.yahoo.com
- 5Full‑year capital spending target remains $220 billion. finance.yahoo.com
- 6Trailing‑12‑month free cash flow swung to an outflow of $42.4 billion. finance.yahoo.com
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.