Amazon’s third-quarter AWS revenue rose 39% year over year to $46 billion, its fastest growth in nearly five years, and AWS operating income climbed to $17.8 billion from $11.4 billion. Total revenue rose 12% to $201.9 billion, and the operating margin reached a record 13.9%. The stock fell because free cash flow over the past 12 months turned negative at $42.4 billion, versus positive $14.8 billion a year earlier, as Amazon expects about $220 billion in capital expenditures in 2026 for AI infrastructure such as data centers. The author says the key question is whether this spending generates enough returns, and suggests watching AWS revenue growth, AWS margins and free cash flow.
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Related tickers and likely impact
AMZN
▼ Likely negativeAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 11/03/2026 | 250.74 |
| Change that session | +2.08% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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