Amazon shares fell around 6% on Thursday evening as fourth-quarter guidance came in below expectations, despite strong growth at AWS. Third-quarter revenue reached $201.9 billion, up 12% year over year but slightly below the $202.3 billion analyst estimate, and earnings per share of $1.89 missed the $1.96 consensus. AWS sales rose 39% to $46 billion, its fastest pace in nearly five years, with operating income of $17.8 billion. The company forecast fourth-quarter revenue of $240 billion to $247 billion, below the $244.5 billion consensus at the midpoint, while advertising revenue of $19.6 billion missed estimates. Capital expenditure hit $77.3 billion against estimates of $57.5 billion, pushing trailing 12-month free cash flow to negative $42.4 billion, and net income included a $9.5 billion pre-tax gain tied to Anthropic. CEO Andy Jassy expects AWS to grow more than 40% in both 2027 and 2028.
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Related tickers and likely impact
AMZN
▼ Likely negativeAmazon
Relevance: high
| 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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