Technology · North America

Amazon misses sales and earnings estimates as AWS revenue grows 39%

Amazon reported quarterly net sales of $201.9 billion and diluted earnings of $1.89 per share, both below analysts’ forecasts, while Amazon Web Services revenue rose 39% and exceeded expectations. The company reported trailing-12-month free cash flow of negative $42.4 billion, compared with positive $14.8 billion for the period ending September 30, 2025.

AI-assisted synthesis · Based on 5 outlets' reporting · Article text read from 1 of 5 outletsHow it's made

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5 outlets2 regionsLatest reporting Oct 29, 9:49 PM UTC2 min read

Coverage: Center OnlyL 0 · C 3 · R 0 · 2 unrated

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What happened

Key facts

Amazon’s net sales increased 12% to $201.9 billion, below analysts’ $202.2 billion forecast (per TechCrunch).
Amazon reported diluted earnings per share of $1.89, below analysts’ $1.97 forecast (per TechCrunch).
Amazon Web Services revenue reached $45.98 billion, exceeding analysts’ $45.29 billion forecast and rising 39% year over year (per TechCrunch).
Amazon said Amazon Web Services operating income was $17.8 billion, compared with $11.4 billion in the third quarter of 2025 (per TechCrunch).
Amazon reported negative free cash flow for the trailing 12 months (per TechCrunch).
Amazon’s trailing-12-month free cash flow was negative $42.4 billion, compared with positive $14.8 billion for the trailing 12 months ended September 30, 2025 (per TechCrunch).
Amazon forecast fourth-quarter net sales of $240 billion to $247 billion and said it still expected cash capital expenditures of about $220 billion for 2026 (per TechCrunch).

The brief

Amazon reported third-quarter net sales and diluted earnings per share below analysts’ forecasts, while revenue at Amazon Web Services (AWS) rose sharply and surpassed estimates. The company’s net sales increased 12% to $201.9 billion, compared with the $202.2 billion analysts expected, according to FactSet. Diluted earnings per share came to $1.89, below the $1.97 forecast.

AWS, Amazon’s cloud unit, brought in $45.98 billion in sales. Analysts had expected $45.29 billion, and revenue grew 39% from the year-earlier quarter. Amazon also reported that AWS operating income reached $17.8 billion, up from $11.4 billion in the third quarter of 2025. The company reported negative free cash flow of $42.4 billion for the trailing 12 months.

For the trailing 12 months ended September 30, 2025, it had reported positive free cash flow of $14.8 billion. TechCrunch described the latest figure as showing Amazon spent substantially more cash than it generated. For the fourth quarter, Amazon forecast net sales between $240 billion and $247 billion.

TechCrunch said the company maintained its expectation of about $220 billion in cash capital expenditures for 2026. The forecast and spending expectation accompanied the quarterly results, but the article did not provide a further breakdown connecting those figures to the free-cash-flow result.

The headlines from SRN News and Global Banking & Finance Review highlighted the fourth-quarter sales estimate and cash burn. The Olympian characterized Amazon’s projected fourth-quarter sales as below estimates.

TradingKey’s headline reported an 11% after-hours share-price drop and gave a different free-cash-flow figure, $33.456 billion; TechCrunch reported negative $42.4 billion for the trailing 12 months. The headlines do not specify the basis or period for TradingKey’s figure, so the two values cannot be directly reconciled from those accounts.

The quarter’s reported results therefore include both a shortfall in overall sales and earnings against forecasts and stronger-than-expected AWS sales, alongside the negative trailing-12-month free-cash-flow figure. Amazon’s fourth-quarter sales forecast and its stated 2026 capital-expenditure expectation are the forward-looking figures accompanying the results.

Why it matters

Amazon’s reported trailing-12-month free cash flow was negative $42.4 billion, compared with positive $14.8 billion for the period ending September 30, 2025.
AWS recorded $45.98 billion in sales and $17.8 billion in operating income, with revenue growth of 39% year over year.
Amazon forecast fourth-quarter sales of $240 billion to $247 billion while maintaining an expectation of about $220 billion in cash capital expenditures for 2026.

What to watch next

Whether Amazon’s fourth-quarter net sales fall within its forecast range of $240 billion to $247 billion.
Whether Amazon maintains its stated expectation of about $220 billion in cash capital expenditures for 2026.
How Amazon’s next reported trailing-12-month free-cash-flow figure compares with the negative $42.4 billion figure it reported.

How it's being covered

Coverage analysisShow details

5 source articles · 5 unique outlets

Outlet political mix: Center Only· 3 Center · 2 unrated

Where the outlets are based: US/Canada 60% · Europe 20% · Other 20%

Outlet political mix

Center Only

Left

Center

Right

0 outlets

3 outlets

0 outlets

The marker shows coverage balance: each unique outlet counts once. 2 unrated outlets are not included.

Geography

Where the outlets covering this story are based.

5 unique outletsDominant coverage: US/Canada

All5 US/CA3 · 60%Europe1 · 20%Unknown1 · 20%

Coverage imbalance

Coverage is currently concentrated among Center-rated outlets (3 of 3 rated sources); comparatively few Left or Right-rated outlets have published on the event.

How we measure coverage

How outlets' accounts compare

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Timeline

Developments from this story's sources, dated background we compiled and fact-checked, and our earlier coverage. Each row says which.

1994
Jeff Bezos founded Amazon as an online bookseller.
Background · compiled and fact-checked by Updat3
May 1997
Amazon went public on the Nasdaq.
Background · compiled and fact-checked by Updat3
2005
Amazon introduced its Prime membership program.
Background · compiled and fact-checked by Updat3
2006
It expanded from retail into cloud computing with the launch of Amazon Web Services in 2006, initially offering storage and computing services.
Background · from our historical context
2007
Amazon launched its Kindle e-reader.
Background · compiled and fact-checked by Updat3
Sep 2023
Amazon announced an investment of up to $4 billion in Anthropic and named AWS its primary cloud provider.
Background · compiled and fact-checked by Updat3
Nov 2024
Amazon announced an additional $4 billion investment in Anthropic and made AWS its primary cloud and training partner.
Background · compiled and fact-checked by Updat3
Oct 30, 2025
Amazon’s prior quarterly report, released October 30, 2025, showed third-quarter net sales of $180.2 billion, up 13% year over year, and AWS revenue of $33 billion, up 20%; AWS operating income was $11.4 billion.
Background · from our historical context

How we got here

Amazon’s prior quarterly report, released October 30, 2025, showed third-quarter net sales of $180.2 billion, up 13% year over year, and AWS revenue of $33 billion, up 20%; AWS operating income was $11.4 billion. Amazon was founded by Jeff Bezos in 1994 as an online bookseller and went public on the Nasdaq in May 1997.

It expanded from retail into cloud computing with the launch of Amazon Web Services in 2006, initially offering storage and computing services. Amazon introduced Amazon Prime in 2005, linking paid membership with faster shipping, and launched its Kindle e-reader in 2007.