Amazon's third-quarter revenue rose 12% year over year to $201.9 billion, slightly short of the $202.25 billion analyst consensus, and EPS of $1.89 missed the $1.97 estimate due to a large gain a year earlier tied to its Anthropic investment. AWS revenue jumped more than 39% to $46 billion, its fastest growth in nearly five years, while its operating income rose 56% to $17.8 billion. Advertising revenue growth slowed to 12% from 26% in the prior quarter. Trailing 12-month free cash flow was negative $42.4 billion as capex reached $75.9 billion in the quarter, and Amazon plans $220 billion in capex this year. The author considers the stock attractively valued at 23 times 2027 forward earnings estimates, and argues that returns on Amazon's AI investments are showing up in revenue and margins.
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 10/30/2026 | 240.47 |
| Change that session | -1.36% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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