Amazon reported a sharp increase in third-quarter operating profit as accelerating demand for cloud computing lifted Amazon Web Services, although net income declined from a year earlier because the prior-year period included a large gain tied to the company’s investment in Anthropic.
Net sales reached $201.9 billion in the July-September quarter, up 12% from $180.2 billion in the same period of 2025. Excluding a $900 million unfavorable foreign-exchange impact, sales growth was 13%, Amazon said. Operating income increased 61% to $28.1 billion from $17.4 billion, producing a record operating margin of 13.9%.
AWS growth leads the results
AWS was the central driver of the stronger operating performance. Cloud-services revenue rose 39.3% year over year to $46 billion, the division’s fastest growth rate in nearly five years, according to Amazon. That result lifted AWS’s annualized revenue run rate to $184 billion.
AWS operating income rose 56% to $17.8 billion, compared with $11.4 billion in the third quarter of 2025. The figures highlight the financial importance of cloud infrastructure to Amazon as businesses increase spending on computing and related services, while the company continues investing in AWS functionality and infrastructure.
“Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 and projected revenue growth rates of over 40% both in 2027 and in 2028,” said Andy Jassy, president and chief executive of Amazon.
Amazon’s retail operations also expanded, but at a slower pace than AWS. North America segment sales grew 6% to $112.9 billion, while international sales increased 5% to $43.1 billion. International growth was 8% excluding currency fluctuations.
Net income falls against a difficult comparison
Net income fell 2% to $20.7 billion, or $1.89 per diluted share, from $21.2 billion, or $1.95 per diluted share, a year earlier. Amazon attributed the decline primarily to a $9.5 billion pretax gain from investments in Anthropic that was recorded in the third quarter of 2025.
| Measure | Third quarter | Year-over-year change |
|---|---|---|
| Net sales | $201.9 billion | 12% increase |
| Operating income | $28.1 billion | 61% increase |
| AWS sales | $46 billion | 39.3% increase |
| Net income | $20.7 billion | 2% decrease |
Amazon sets fourth-quarter range
For the fourth quarter of 2026, Amazon expects net sales between $240 billion and $247 billion, representing year-over-year growth of 12% to 16%. The company projected operating income of between $28.5 billion and $33.5 billion for the final quarter.
- AWS revenue rose 39.3% to $46 billion.
- Amazon’s third-quarter operating margin reached 13.9%.
- Fourth-quarter sales guidance ranges from $240 billion to $247 billion.
Jassy also said Amazon could have two trillion-dollar revenue businesses within the next five to 10 years, but that statement was a longer-term projection rather than a reported financial result. The company’s current figures show a widening contribution from AWS alongside continued growth in its North American and international retail businesses.
