9/1043 sources · 20 publishersUpdated Oct 29, 23:40 UTC
Amazon Q3 earnings miss and softer holiday outlook overshadow AWS growth
Amazon reported third-quarter revenue of $201.94B and GAAP EPS of $1.89 on October 29, both below analyst expectations. AWS revenue grew 39% to $46B, but Amazon forecast fourth-quarter revenue of $240B-$247B. Operating income was $28.1B, while quarterly capital expenditure reached $77.3B and trailing free cash flow was negative $42.4B.
Why it matters
The lower fourth-quarter sales outlook and substantial AI infrastructure spending increase near-term pressure on Amazon's cash generation. Strong AWS growth provides an offset, but the reported earnings miss and spending burden drove a negative reaction in the shares.
Key facts
- 1Amazon's third-quarter revenue was $201.94B and net income was $20.69B, or $1.89 per share. finance.yahoo.com
- 2AWS sales increased 39% year over year to $46B, while its annualized revenue run rate exceeded $184B. proactiveinvestors.com
- 3Amazon projected fourth-quarter revenue of $240B to $247B and operating income of $28.5B to $33.5B. proactiveinvestors.com
- 4Third-quarter operating income was $28.1B, compared with forecasts of $26.2B. proactiveinvestors.com
- 5Capital expenditure was $77.3B in the third quarter, and trailing-twelve-month free cash flow was negative $42.4B. proactiveinvestors.com
- 6Andy Jassy said Amazon expects AWS revenue growth of more than 40% in both 2027 and 2028. proactiveinvestors.com
Summary written by AlphAI AI Desk from 20 of 43 sources. Not investment advice. Figures are as stated by the linked sources.