Amazon's cost to serve each order fell for a fourth straight year despite higher fuel and line-haul costs, thanks to better inventory placement, shorter shipping distances and package consolidation; shipping costs rose 11% to $28.3 billion, versus 12% growth in units sold. Third-quarter net sales grew 12.1% to $201.9 billion with a record operating margin of 13.9%, and AWS rose 39.3% to $46 billion, but revenue and EPS of $1.89 fell short of Bloomberg analyst consensus, and the stock fell 7% after hours. Amazon expects to spend $220 billion on AI infrastructure and data centers in 2026 and significantly more in 2027, which has pushed free cash flow sharply lower. For the fourth quarter, Amazon guided net sales of $240 billion to $247 billion and operating income of $28.5 billion to $33.5 billion. The company also doubled its fleet of robotic arms Cardinal and Sparrow in 2026.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Amazon’s AI Bill Accelerates, but Its Cost to Deliver Each Order Keeps Shrinking
Read the original on Yahoo Finance ↗
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/29/2026 | 244.23 |
| Change that session | -4.07% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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