Amazon Earnings: AWS Growth And AI Capex In Focus

Amazon.com Inc. (AMZN) will report third-quarter earnings after the market close on Oct. 29, 2026. The results will reveal whether accelerating demand for Amazon Web Services (AWS) and the company’s stockpiled capacity are translating into the stronger sales and operating income outlined in its guidance.

Q3 Results and Guidance

Amazon confirmed in an official announcement on Oct. 26, updated Oct. 28, that it will release third-quarter results on Oct. 29. The company’s guidance calls for net sales between $197.0 billion and $202.0 billion and operating income of $22.5 billion to $26.5 billion.

In the second quarter, Amazon reported revenue of $200.61 billion and operating income of $27.46 billion, setting the baseline for evaluating Q3 results. The guidance range allows for different outcomes depending on how AWS demand converts to revenue and how North American retail sales perform after Prime Day was shifted into Q2. This timing change is expected to make year-over-year comparisons of North American retail growth more challenging in Q3, increasing the relative importance of AWS to overall revenue momentum.

To support holiday fulfillment, Amazon plans to hire 300,000 U.S. seasonal workers, up from 250,000 in each of the prior three years.

AWS Demand and Capital Spending

AWS revenue in Q2 was $42.23 billion, up 37% year over year, marking the fastest growth for the segment in 18 quarters. CEO Andy Jassy said on Oct. 23 that AWS capacity is largely sold out through 2027, with a substantial portion of 2028 already committed. He noted that Amazon will retain some capacity for on-demand usage and services such as Bedrock and EC2, highlighting tight capacity as the company balances conventional workloads and emerging AI demands.

Amazon expects to spend approximately $220 billion in capital expenditures in 2026, focusing heavily on data centers and AI-related infrastructure. This level of spending has drawn attention to whether the company can convert these investments into sustained financial returns.

Trailing 12-month free cash flow was negative $7.6 billion after Q2, with some projections suggesting a wider outflow in Q3. If cash outflows increase while capital spending remains high, investors are likely to scrutinize the timing and payback of these investments more closely.

Analyst estimates for Q3 revenue cluster around $202.2 billion, with adjusted earnings per share between $1.97 and $2.01. AWS revenue estimates range from $45.4 billion to $45.6 billion, implying growth of roughly 37% to 38% year over year. Achieving this growth would keep AWS among Amazon’s fastest-growing businesses and test whether committed capacity is being monetized effectively.

The upcoming earnings report will be closely watched to determine if accelerating AWS demand and heavy AI-related capital spending are delivering the sales and operating income targets in Amazon’s Q3 guidance.