Amazon reported booming cloud revenue but otherwise missed expectations
2:20 PM PDT · October 29, 2026
Amazon reported its third-quarter earnings on Thursday and missed analysts’ expectations for both its total revenue and earnings per share. There were other murky numbers in the report that scared investors, too, including how much cash the company is burning through.
But the report did have a big, bright spot: its cloud unit, Amazon Web Services, beat revenue expectations and grew a whopping 39% compared to the year-ago quarter.
Here are the numbers:
- Net sales increased 12% to $201.9 billion. But analysts were expecting $202.2 billion, according to FactSet.
- Fully diluted earnings per share were $1.89. Analysts were expecting $1.97.
- AWS sales reached $45.98 billion. Analysts were expecting $45.29 billion. In addition, Amazon said that AWS operating income grew to $17.8 billion, compared with $11.4 billion in the third quarter of 2025.
But here’s the biggest ouch of the report: Free cash flow...
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