Key Highlights

  • Third quarter net sales rose 12% to $201.9 billion from $180.2 billion.
  • AWS sales jumped 39% to $46.0 billion, with its share of sales reaching 23%.
  • Operating income was $28.1 billion, up from $17.4 billion a year earlier.
  • Net income was $20.7 billion, or $1.89 per diluted share, versus $21.2 billion, or $1.95.
  • Purchases of property and equipment reached $77.3 billion in the quarter.

Net sales climb 12% with AWS doing the heavy lifting

Amazon (NASDAQ:AMZN) reported third quarter 2026 net sales of $201.9 billion, up from $180.2 billion a year earlier. Sales increased 12%, or 13% excluding foreign exchange, since currency movements reduced net sales by $896 million. For the nine months, net sales were $584.1 billion, up 16%.

AWS sales increased 39% to $46.0 billion from $33.0 billion, which the filing attributes primarily to increased customer usage, partly offset by pricing changes tied to long-term customer contracts. AWS now represents 23% of consolidated net sales, against 18% a year ago.

North America sales rose 6% to $112.9 billion and International sales rose 5% to $43.1 billion, or 8% excluding foreign exchange. Both segments cited higher unit sales, Advertising and subscription services.

Operating income jumps 61% on a calculated basis

Consolidated Operating Income was $28.1 billion, compared with $17.4 billion in the third quarter of 2025, a calculated increase of about 61%. For the nine months, operating income was $79.4 billion versus $55.0 billion.

In North America, segment operating income was $8.7 billion, up from $4.8 billion. Nine-month North America operating income was $26.1 billion, against $18.1 billion.

Net income, however, was $20.7 billion, or $1.89 per diluted share, compared with $21.2 billion, or $1.95, a calculated decline of about 2%. Nine-month Net Income was $113.6 billion, or $10.42 per diluted share, versus $56.5 billion, or $5.22.

Capital spending reshapes the Cash Flow picture

Purchases of property and equipment were $77.3 billion in the third quarter, compared with $35.1 billion a year earlier. For the nine months, such purchases totaled $175.7 billion versus $92.3 billion. The filing notes that results are shaped by the development and adoption of technologies, including artificial intelligence.

On a trailing twelve month basis, purchases of property and equipment, net of proceeds from sales and incentives, were $210.7 billion versus $115.9 billion. Free cash flow for that period was negative $42.4 billion, compared with positive $14.8 billion a year earlier.

Net income over the Trailing Twelve Months was $134.8 billion, up from $76.5 billion, so the move in free cash flow reflects Investment intensity rather than weaker profitability.

What the quarter says about growth, margins and investment

Amazon's third quarter combined faster cloud growth with higher consolidated operating income and a much larger build-out of property and equipment. The segment mix shifted toward AWS, which grew from 18% to 23% of sales in a year.

The filing flags Macroeconomic Factors including inflation, interest rates, Supply Volatility and shifts in global Tariff and trade policies among the influences on results. Foreign exchange was a small drag on third quarter sales growth but added $2.1 billion to nine-month net sales.

Points to follow in coming quarters include whether AWS maintains growth near this pace, how pricing on long-term contracts evolves, and how Capital spending compares with the $77.3 billion third quarter level.