Developing story
Amazon Q3 Earnings and AWS Growth Outlook
Amazon Q3 Earnings and AWS Growth Outlook: 1 development over 1 day, since 29 October 2026. Latest, 29 October 2026: Amazon Web Services, Amazon's cloud-computing arm, reported third-quarter revenue of $45.98 billion, up 39% from a year earlier.
The story so far
Amazon's third-quarter results, published on 29 October, showed advertising revenue rising 11% to $19.64 billion and subscription revenue rising 11% to $14 billion 1. Wall Street had gone into the report focused on Amazon Web Services, the company's cloud computing arm 1.
On 30 October, AWS reported third-quarter revenue of $45.98 billion, up 39% from a year earlier, which beat estimates 2. The results pointed to accelerating demand for cloud services as major providers race to build data centers that can handle artificial intelligence workloads 2. On the company's earnings call that day, chief executive Andy Jassy said he believes AWS can become a business with $1 trillion in annual revenue within the next five to 10 years 3. He described AWS as having a $184 billion annualized revenue run-rate 3. The 39% rise was the unit's sixth straight quarter of steady growth 3.
Written automatically from the Oesnada stories in this timeline. Every number is checked against them. The numbers in brackets link to those stories.
Timeline
Also on our radarAWS Will Become a $1 Trillion Business, Jassy Says, After Heavy SpendingTechcrunch
Amazon CEO Andy Jassy said on the company's quarterly earnings call that he believes Amazon Web Services (AWS), its cloud computing unit, can become a business with $1 trillion in annual revenue within the next five to 10 years. AWS revenue rose 39% from a year earlier, its sixth straight quarter of steady growth, and Jassy described it as a business with a $184 billion annualized revenue run-rate. Amazon said it still expects about $220 billion in cash capital expenditure (money spent on long-term assets like data centers) in 2026, mostly for AWS, and "meaningfully more" in 2027. The spending is the main tension. Amazon's heavy investment in AI infrastructure has worried investors this year, and Wall Street analysts repeatedly pressed Jassy on the outlay, the signs that growth will materialize, and the profit margins to expect. Jassy called the AI boom a "once-in-a-lifetime opportunity" that justifies a large commitment now, saying Amazon intends to invest to remain the leader and can fund the plan. Amazon shares fell about 6% in after-market trading on Thursday. Jassy said Amazon believes AWS can grow north of 40% in both 2027 and 2028, pointing to its pace of innovation, new core and AI features, enterprises wanting to run their core and AI workloads on AWS, and the capacity it adds each year. He said enterprise AI adoption is still in "the very early days" and that the strategy is working so far. Amazon is not alone in the pattern: Microsoft recently reported another record quarter of revenue growth driven largely by its cloud business, while also spending heavily.
Read at the source- CNBC
Amazon's AWS Q3 Revenue Rises 39% to $45.98B, Beats Estimates
Amazon Web Services, Amazon's cloud-computing arm, reported third-quarter revenue of $45.98 billion, up 39% from a year earlier.
Also on our radarAmazon Q3 Ad Revenue Rises 11% to $19.64B, Subscriptions Up 11% to $14BCnbc
Amazon's third-quarter results showed advertising revenue rising 11% to $19.64 billion and subscription revenue rising 11% to $14 billion. Heading into the report, Wall Street was focused on Amazon Web Services, its cloud computing arm. StreetAccount analysts expected AWS sales to grow 38%, up from 37% last quarter, which would be its fifth straight quarter of faster growth. The attention on AWS reflects the scale of Amazon's AI spending. CEO Andy Jassy said the company's cloud capacity is "largely sold out" for next year, with significant commitments already made for 2028. Analysts surveyed by StreetAccount expect capital expenditure, meaning money spent on assets like data centers, to climb past $280 billion in 2027. The build-out has strained cash flow: Amazon reported negative free cash flow of $7.6 billion for the twelve months through July, compared with positive $18.2 billion a year earlier, and FactSet estimates a $9.9 billion outflow this quarter. Alphabet and Meta also reported negative free cash flow, while Microsoft's fell 27% but stayed positive. Amazon is also tightening control over AI shopping agents, software that buys on a user's behalf. It blocked Meta's Muse agent, saying it received no advance notice and never agreed to take part, and has blocked dozens of outside agents, including Perplexity, which it sued last year. Meanwhile, Amazon said more than 400 million shoppers have used Alexa for Shopping, formerly Rufus, and that use of its agentic features has grown more than eightfold since the start of the year. Deutsche Bank analysts said the key question is whether Amazon can accommodate third-party agents on terms that preserve attractive monetization. Separately, Amazon laid off fewer than 250 employees in its device software and services team this week.
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Oesnada, "Amazon Q3 Earnings and AWS Growth Outlook", https://oesnada.com/storylines/amazon-q3-earnings-and-aws-growth-outlook, accessed 30 October 2026.