Reported by 2 outlets
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Amazon missed analyst expectations for third-quarter revenue and earnings per share, sending its shares down more than 7% in late trading. Net sales rose 12% to $201.9 billion, falling just short of the $202.2 billion expected by analysts, while fully diluted earnings came in at $1.89 per share compared to estimates of $1.97. However, Amazon Web Services outperformed projections, expanding 39% year over year to reach $45.98 billion in sales and $17.8 billion in operating income. [1][2]
Rising expenditures weighed heavily on the results. Trailing 12-month free cash flow dropped to negative $42.4 billion, reversing from positive free cash flow of $14.8 billion over the same span through September 30, 2025. Amazon attributed the large outlays primarily to investments in artificial intelligence and its ongoing cloud infrastructure expansion. [1][2]
The company affirmed plans to finish 2026 with roughly $220 billion in cash capital expenditures. Looking ahead, Amazon projected fourth-quarter net sales of $240 billion to $247 billion, which implies its annual capital spending will approach total holiday-quarter revenue. [2]
Shares of Amazon.com Inc. fell more than 7% in late trading today after the company missed expectations on earnings and revenue and reported rising negative free cash flow as it continues to throw billions of dollars at its cloud infrastructure build out. The company reported third-quarter earnings before certain costs such as stock compensation of…
via SiliconANGLE
The biggest ouch of the report was its negative free cash flow of $2.4 billion.
via TechCrunch