🚨 👉 Amazon's Q3 earnings are out. Here's what you need to know: - Net sales gr
By Martin Heubel · October 30, 2026 · Curated by George's Blog
🚨 👉 Amazon's Q3 earnings are out. Here's what you need to know:
- Net sales grew +12% YoY to $201.9 bn
- Operating income grew +61.5% YoY to $28.1 bn
- AWS saw 39% YoY growth to $46.0 bn
Data worth noting:
- Online stores returned 2.0% growth (-600 bps YoY)
- 3P share of sold units remained steady at 61%
- Advertising sales grew 12% YoY, +1,000 bps faster than online store sales
*** TL;DR ***
Shareholders didn't like these earnings, with Amazon losing more than 12% of its share price in after-hours trading. While operating margins approach all-time highs, Amazon spooked investors with continued high CapEx spending and a growing negative cash outflow.
With billions committed to AI infrastructure and faster fulfilment, CEO Andy Jassy's focus on profitability isn't going away anytime soon. Free cash flow optimisation, improving retail margins, and reducing the cost to serve consumers will remain Amazon's top priorities in 2027.
What do you think? Has Amazon pushed the lever too far towards profitability and not focused enough on growth?