Catenaa, Friday, October 30, 2026- Amazon stock fell on Friday after third-quarter earnings failed to impress investors and negative cash flows worsened.
CNBC reported that the company recorded Earnings per share of $1.89 vs. $1.96 estimated and revenue of $201.94 billion for Q3 vs. $202.31 billion estimated.
According to CNBC, the company held steady on its 2026 capital expenditure forecast, saying it still expects spending to reach $220 billion this year.
Meanwhile, Amazon Web Services sales rose 39% to $46.0 billion in the third quarter, its quickest expansion in almost five years. The company said AWS is now generating revenue at a pace that would total $184 billion over a full year.
Wall Street analysts had forecast AWS revenue of $45.29 billion, according to CNBC.
Amazon stock fell as much as 3% on Friday, and the stock is down more than 10% since April.
Amazon attributed part of its third-quarter sales performance to a change in its annual Prime Day schedule. The event was held during the second quarter in major markets this year, compared with the third quarter in 2025. The company estimates that sales growth would have been approximately four percentage points higher without the shift.
According to CNBC, CEO Andy Jassy said on a conference call with investors that the company expects to “spend meaningfully more in 2027,” and that Amazon has a “clear line of sight to attractive financial returns.”
Amazon’s third-quarter operating profit increased approximately 61% year-on-year to $28.1 billion, pushing its operating margin to a record 13.9%. Its cloud division contributed $17.8 billion in operating earnings, compared with $11.4 billion a year earlier.
CNBC reported that Amazon expects fourth-quarter revenue to be between $240 billion and $247 billion.
The midpoint of its guidance was below Wall Street’s expectations of $244.5 billion, according to LSEG.
Investors closely watch Amazon’s fourth-quarter sales because holiday shopping drives the biggest revenue.
Amazon CEO Andy Jassy said in a statement that AWS is projecting revenue growth rates of more than 40% in both 2027 and 2028.
Amazon recorded a free cash flow deficit of $42.4 billion during the period, despite operating cash flow over the past 12 months growing 29% to $168.3 billion.
Amazon said the swing reflected AI-focused investment that pushed its net outlays for property and equipment to $94.8 billion, up from the prior-year level.
