Amazon Com Inc
AMZN10-Q,quarter ended Sep 30, 2026,filed Oct 30, 2026,Original on SEC.gov (opens in a new tab)
3 of 3 checkable figures match the filing, 4 of 4 risk excerpts located in the filing text
Coverage details
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Coverage does not verify every claim. Check the cited sources and the original filing.
The Print
Amazon reported Q3 2026 net sales of $201.9B (up 12% YoY) and net income of $20.7B ($1.89 diluted EPS), with operating income rising to $28.1B from $17.4B a year earlier.
Operating income rose to $28.1B from $17.4B, with segment increases attributed by management to higher unit sales and advertising sales in North America and International, and to increased sales in AWS partially offset by technology infrastructure spending. Net income nonetheless fell to $20.7B from $21.2B because other income (expense), net moved to $(703)M from $10.2B, which the filing attributes primarily to Anthropic-related upward adjustments and reclassification gains in the prior-year period.
- Total net sales rose 12% YoY to $201.9B, with AWS sales up 39% to $46.0B and North America up 6% to $112.9B.
- Operating income increased to $28.1B from $17.4B, lifting operating margin to 13.9% from 9.7%.
- Net income declined to $20.7B from $21.2B despite higher operating income, as other income (expense), net swung to $(703)M from $10.2B a year earlier.
- Cash capital expenditures were $75.9B in Q3 2026 versus $34.2B in Q3 2025, and management continues to expect 2026 cash capital expenditures of approximately $220B.
Results That Matter
- Total net sales
- Current period
- $201.9B
- Prior period
- $180.2B
- Change
- +12.1%
Sales increased 12% in Q3 2026; changes in foreign exchange rates reduced net sales by $896 million for the quarter. - Operating income
- Current period
- $28.1B
- Prior period
- $17.4B
- Change
- +61.2%
Operating income increased from $17.4 billion in Q3 2025 to $28.1 billion in Q3 2026. - Net income
- Current period
- $20.7B
- Prior period
- $21.2B
- Change
- −2.4%
Net income declined despite higher operating income, as other income (expense), net was $(703) million versus $10.2 billion in the prior-year quarter. - Diluted earnings per share
- Current period
- $1.89
- Prior period
- $1.95
- Change
- −3.1%
Diluted EPS moved with net income; diluted weighted-average shares rose to 10,929 million from 10,845 million. - Basic earnings per share
- Current period
- $1.92
- Prior period
- $1.98
- Change
- −3.0%
Basic EPS declined in line with the net income movement. - Operating margin
- Current period
- 13.9%
- Prior period
- 9.7%
- Change
- +4.2 ppts
Operating margin expanded as operating income grew faster than net sales.
| Metric | Current Period | Prior Period | Change | Investor Takeaway |
|---|---|---|---|---|
| $201.9B | $180.2B | +12.1% | Sales increased 12% in Q3 2026; changes in foreign exchange rates reduced net sales by $896 million for the quarter. | |
| $28.1B | $17.4B | +61.2% | Operating income increased from $17.4 billion in Q3 2025 to $28.1 billion in Q3 2026. | |
| $20.7B | $21.2B | −2.4% | Net income declined despite higher operating income, as other income (expense), net was $(703) million versus $10.2 billion in the prior-year quarter. | |
| $1.89 | $1.95 | −3.1% | Diluted EPS moved with net income; diluted weighted-average shares rose to 10,929 million from 10,845 million. | |
| $1.92 | $1.98 | −3.0% | Basic EPS declined in line with the net income movement. | |
| 13.9% | 9.7% | +4.2 ppts | Operating margin expanded as operating income grew faster than net sales. |
What changed
Quarter over quarter, against the 10-Q for the quarter ended Jun 30, 2026.
Prior 10-QRevenue up 0.7%; Net income down 67.0%
| Metric | Prior | Current | Change | Read as |
|---|---|---|---|---|
| Revenue | $200.6B | $201.9B | +0.7% | Favorable |
| Net income | $62.6B | $20.7B | −67.0% | Unfavorable |
| EPS (diluted) | $5.75 | $1.89 | −67.1% | Unfavorable |
- Revenue+0.7%Prior $200.6B, current $201.9BFavorable
- Net income−67.0%Prior $62.6B, current $20.7BUnfavorable
- EPS (diluted)−67.1%Prior $5.75, current $1.89Unfavorable
▲ and ▼ show the direction of each change. Color and “Read as” show whether that direction is usually favorable for the metric.
Earnings Quality & Cash Conversion
Operating income of $28.1B includes net unrealized gains of $91 million on energy derivative contracts recorded within Technology and infrastructure. Below the operating line, other income (expense), net was $(703)M in Q3 2026 versus $10.2B in Q3 2025; the prior-year figure included a $2.3B reclassification adjustment for gains on available-for-sale debt securities and $7.2B of upward adjustments on private-company equity investments, primarily Anthropic nonvoting preferred stock. The income tax provision of $6.2B in Q3 2026 compares with $6.9B a year earlier.
Operating cash flow was 2.1x net income attributable to the parent (cash conversion); free cash flow of $-34.8B (derived as operating cash flow minus the absolute selected capex cash-flow amount; not an issuer-defined or discretionary-cash measure).
Red flag
Red flag
Value Drivers & Capital Allocation
Capital expenditures $77.3B (prior $35.1B) (selected cash-flow amount, not necessarily total capital investment).
Financing cash flow for 2026-07-01 to 2026-09-30 was an inflow of $48,935,000,000, compared with an outflow of $44,000,000 for 2025-07-01 to 2025-09-30. Net financing changed from an outflow to an inflow.
“Cash capital expenditures were $34.2 billion and $75.9 billion during Q3 2025 and Q3 2026, and $89.9 billion and $172.2 billion for the nine months ended September 30, 2025 and 2026, which primarily reflect investments in technology infrastructure (the majority of which is to support AWS business growth) and in additional capacity to support our fulfillment network, both of which we expect to increase in 2026.”
Filing statement
“During the nine months ended September 30, 2026, we invested $50.0 billion in OpenAI’s Series C Preferred Stock, including $21.3 billion invested in Q3 2026, and $10.0 billion in Anthropic nonvoting preferred stock.”
Filing statement
“On April 13, 2026, Amazon entered into a definitive merger agreement to acquire Globalstar, Inc. (“Globalstar”), a Delaware corporation, for a mix of cash and stock consideration.”
Filing statement
“As of the date of the merger agreement, the acquisition implied a value for Globalstar of approximately $10.9 billion, including its debt.”
Filing statement
Period net income attributable to the parent / period-end equity, not annualized: 3.4% (prior at 2025-09-30: 5.7%); period net income attributable to the parent / period-end assets, not annualized: 1.7%.
Forward Signals
Fourth Quarter 2026 Guidance: Net sales are expected to be between $240.0 billion and $247.0 billion, or to grow between 12% and 16% compared with fourth quarter 2025, anticipating an unfavorable impact of approximately 60 basis points from foreign exchange rates. Operating income is expected to be between $28.5 billion and $33.5 billion, compared with $25.0 billion in fourth quarter 2025. The company continues to expect 2026 cash capital expenditures to be approximately $220 billion. Guidance assumes no impact from energy derivative contract remeasurements and that no additional business acquisitions, restructurings, or legal settlements are concluded.
Known trends
- We expect cash capital expenditures to meaningfully increase in 2027, primarily driven by investments in technology infrastructure.
- We expect year-over-year advertising revenue to grow in the high teens in fourth quarter 2026.
- We expect to undertake additional financing activities in 2026.
Subsequent events
- Guidance was provided on October 29, 2026, in the earnings release furnished on Form 8-K.
“Net sales are expected to be between $240.0 billion and $247.0 billion, or to grow between 12% and 16% compared with fourth quarter 2025.”
Amazon.com, Inc. (MD&A — Guidance)
“We expect cash capital expenditures to meaningfully increase in 2027, primarily driven by investments in technology infrastructure.”
Amazon.com, Inc. (MD&A — Liquidity and Capital Resources)
Risks
Excerpts are the filing’s own words; each heading is the start of its excerpt. Selected excerpts are not a complete risk inventory.
In August 2026, the Federal Trade Commission and 22 state Attorneys General filed a complaint…
In August 2026, the Federal Trade Commission and 22 state Attorneys General filed a complaint against Amazon.com, Inc., in the United States District Court for the Western District of Washington and the State of Texas filed a complaint against Amazon.com, Inc., Amazon.com Services LLC, and Amazon Advertising LLC
In June 2026, the International Trade Commission instituted an investigation, during which Xockets…
In June 2026, the International Trade Commission instituted an investigation, during which Xockets has also alleged that AWS products with GB300 servers infringe the asserted patents.
These complaints seek billions of dollars of alleged damages, treble damages, punitive damages…
These complaints seek billions of dollars of alleged damages, treble damages, punitive damages, injunctive relief, structural relief, civil penalties, attorneys’ fees, and costs.
As of September 30, 2026, the energy contract quantities subject to derivative accounting fair value…
As of September 30, 2026, the energy contract quantities subject to derivative accounting fair value measurements were approximately 690 million megawatt-hours and the weighted-average remaining duration of these contracts is approximately 18 years
4 of 4 excerpts located in the filing text
Segments
| Segment | Revenue | Operating Income | Revenue Change | Commentary |
|---|---|---|---|---|
| North America | $112.9B | $8.7B | +6.2% | Management attributes the operating income increase primarily to increased unit sales and increased advertising sales, partially offset by increased shipping, fulfillment, and technology and infrastructure costs. |
| AWS | $46.0B | $17.8B | +39.3% | Management attributes the operating income increase primarily to increased sales, partially offset by spending on technology infrastructure primarily driven by additional investments to support AWS business growth; sales growth primarily reflects increased customer usage, partially offset by pricing changes primarily driven by long-term customer contracts. |
| International | $43.1B | $1.6B | +5.4% | Management attributes the operating income increase primarily to increased unit sales and increased advertising sales, partially offset by increased shipping and fulfillment costs; changes in foreign exchange rates negatively impacted operating income by $125 million in Q3 2026. |
Balance Sheet & Liquidity
Leverage: Identified debt as of 2026-09-30 (carrying amount): long-term debt including current maturities of $180.9B; noncurrent long-term debt of $173.1B; current portion of long-term debt of $6.8B; short-term borrowings of $380.0M. The reported scopes overlap; no non-overlapping subtotal is established. Total debt, net debt and debt-to-equity are therefore not stated.
Liquidity: Cash, cash equivalents, and marketable securities at fair value were $114.2B at September 30, 2026, down from $123.0B at December 31, 2025. There were no borrowings outstanding under the two unsecured revolving credit facilities or the commercial paper programs, and $17.5B outstanding under the Term Loan. Management states it believes operating cash flows, balances, borrowing arrangements and other financing activities will be sufficient to meet anticipated operating cash needs for at least the next twelve months.
Cash flow: Cash flow — operating $42.4B, investing $-113.6B, financing $48.9B.
Working capital: Current assets $255.1B vs. current liabilities $258.0B (current ratio 0.99x). Prior reported balance sheet as of 2025-12-31: $229.1B vs. $218.0B (1.05x).
Maturities & covenants
- Long-term debt principal and interest commitments total $294.3B, including $1.4B in Q4 2026, $16.6B in 2027, $19.6B in 2028, $39.2B in 2029, $12.5B in 2030 and $205.0B thereafter.
- Total commitments as of September 30, 2026 were $883.6B, including $164.9B of leases not yet commenced and $159.6B of property and equipment commitments.
Notable Footnotes
| Item | Impact |
|---|---|
| Anthropic investment | Nonvoting preferred stock carrying value rose to approximately $92.5B at September 30, 2026 from $14.8B at December 31, 2025; convertible notes fair value was approximately $146.2B with $140.3B of unrealized gain in accumulated other comprehensive income. Upward adjustments of $62.8B were recorded in other income (expense), net for the nine months ended September 30, 2026. |
| OpenAI investment | Amazon invested $50.0B in OpenAI Series C Preferred Stock, including the remaining $21.3B commitment in Q3 2026, recorded as a private-company equity investment measured at Level 3 fair value. |
| AWS performance obligations | Commitments not yet recognized for contracts with original terms exceeding one year were estimated at approximately $578B as of September 30, 2026, with a weighted-average remaining life of 6.1 years. |
| Globalstar acquisition | The merger agreement implies a value of approximately $10.9B including debt, with closing expected in 2027 subject to regulatory approvals and satellite replacement milestones. |
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