Amazon AWS revenue rises 39% in Q3 as shares fall on cautious forecast
Overview
Amazon reports AWS third-quarter revenue of $45.98 billion, up 39% year over year and above the $45.29 billion analyst consensus polled by StreetAccount, according to CNBC. AWS operating income rose 55% to $17.77 billion.
Overall net income was $20.69 billion, or $1.89 per share, below the $1.97 analysts expected, according to The Guardian.
Amazon forecasts fourth-quarter net sales of $240 billion to $247 billion, below the $244.16 billion analysts expected, and shares fell more than 6% in after-hours trading. CEO Andy Jassy says AWS can grow above 40% annually in 2027 and 2028 and become a trillion-dollar revenue business within five to 10 years, according to TechCrunch. Amazon still expects about $220 billion in 2026 cash capital expenditure, most of it for AWS, and says it will spend meaningfully more in 2027.
Written by AI from the articles below · updated Oct 29, 7:52 PM ET
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Developments
3 developments
- Oct 29, 7:42 PM ET · 1 articleAmazon's Jassy says AWS can reach $1T revenue, plans $220B 2026 capexTechCrunch · AI: Jassy says AWS can reach $1 trillion in revenue as Amazon raises AI spending
- Oct 29, 5:23 PM ET · 1 articleAmazon reports mixed Q3 earnings with AWS growth at 39.3%The Guardian · AI: Amazon's AWS sales grow 39.3%, but shares fall on cautious forecast
- Oct 29, 5:06 PM ET · 1 articleAmazon AWS reports 39% Q3 revenue growth, above analyst estimatesCNBC · Technology: Amazon AWS revenue rises 39% as cloud rivals also accelerate
Article timeline
The articles in this story. Times are ET.
- TechCrunch · AINewsJassy says AWS can reach $1 trillion in revenue as Amazon raises AI spending
AIAmazon CEO Andy Jassy says AWS can grow above 40% annually in 2027 and 2028 and become a trillion-dollar revenue business within five to 10 years. Amazon still expects about $220 billion in 2026 cash capex, most of it for AWS, and plans to spend meaningfully more in 2027. AWS revenue rose 39% from a year earlier to a $184 billion annualized run rate, while shares fell about 6% in after-hours trading.
- The Guardian · AINewsAmazon's AWS sales grow 39.3%, but shares fall on cautious forecast
AIAmazon reported third-quarter sales of $201.94bn and net income of $20.69bn, or $1.89 per share, below analysts' expected $1.97 per share. AWS sales rose 39.3%, the fastest growth in nearly five years, and Amazon forecasts fourth-quarter net sales of $240bn to $247bn, below analysts' expectation of $244.16bn. Shares fell more than 6% in after-hours trading.
- CNBC · TechnologyNewsAmazon AWS revenue rises 39% as cloud rivals also accelerate
AIAmazon Web Services reported third-quarter revenue of $45.98 billion, up 39% year over year and above the $45.29 billion analyst consensus. AWS also acquired data analysis startup DuckLabs, and its operating income rose 55% to $17.77 billion. Google Cloud more than doubled in the quarter, and Azure reached 72% of AWS's size, up from 58% two years ago.
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