10-Q · April 29, 2026
Amazon.com, Inc. reported strong Q1 2026 earnings with a revenue of $181.5 billion, exceeding estimates by 2.38%. The EPS was $2.78, significantly above the consensus of $1.64. The company experienced robust growth in…
Earnings analysis · 10-Q
AMZN earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Amazon delivered strong operating execution in Q3 2026, with revenue of $201.944 billion up 12.1% year over year and a record 13.9% operating margin, helped by 39% AWS growth. However, diluted EPS of $1.89 declined…
Read full summary
Amazon delivered strong operating execution in Q3 2026, with revenue of $201.944 billion up 12.1% year over year and a record 13.9% operating margin, helped by 39% AWS growth. However, diluted EPS of $1.89 declined sharply from $5.75 in Q2, missed consensus of $1.97, and cash flow remains pressured by the company’s approximately $220 billion 2026 capital-spending plan. The balance of strong profitability and AWS momentum against heavy AI investment, elevated financing, foreign-exchange exposure, and investment-valuation volatility supports a neutral outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.89
- Operating margin
- 13.9%
- Segment
- International: represented 21% of Q3 2026 consolidated revenue; reported segment sales were $927 million lower than Q3 2025 due to foreign-exchange fluctuations.
- Segment
- AWS: sales grew 39% year over year, according to the related earnings disclosure.
- Segment
- North America: included in consolidated revenue, but Q3 segment revenue was not provided in the supplied filing text.
What stood out
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Revenue grew 12.1% year over year
Q3 revenue was $201.944 billion, up approximately 0.7% from $200.61 billion in Q2 2026 and 12.1% from $180.17 billion in Q3 2025, although it was slightly below the $202.217 billion consensus estimate.
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Record operating margin
Operating margin reached a record 13.9%, up from 13.7% in Q2 2026 and 9.7% in Q3 2025, representing a 20-basis-point sequential expansion and 420-basis-point year-over-year improvement.
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AWS growth accelerated
AWS sales growth accelerated to 39% year over year, supporting consolidated operating performance despite modestly below-consensus revenue and EPS.
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International remains FX exposed
International sales accounted for 21% of consolidated revenue. Foreign-exchange movements reduced Q3 2026 International segment sales by $927 million compared with Q3 2025.
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Large strategic investment portfolio
The company reported $298.8 billion of recorded equity, equity-warrant, and convertible-debt investments as of September 30, 2026, including $6.7 billion in publicly traded investments.
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Expanded liquidity capacity
Amazon established new unsecured revolving facilities totaling $20.0 billion: a $15.0 billion five-year facility and a $5.0 billion 364-day facility. The facilities provide additional liquidity for working capital and general corporate purposes.
What to watch
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Sharp EPS decline and miss
Q3 diluted EPS was $1.89, down from $5.75 in Q2 2026 and $1.95 in Q3 2025, and missed the $1.97 consensus estimate. The sequential decline was approximately 67%, indicating substantial earnings volatility despite stronger operating margin.
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AI investment pressures cash flow
The company expects approximately $220 billion of 2026 cash capital expenditures, while free cash flow remained pressured by AI-related investment. The scale of planned spending creates risk of continued cash-flow deterioration or lower returns if demand and monetization lag.
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Higher debt and financing exposure
Amazon had $17.5 billion outstanding under its senior unsecured delayed-draw term loan as of the filing, and added $20.0 billion of revolving credit capacity. The increased borrowing capacity and outstanding term loan raise financing and interest-rate exposure, even though the facilities do not contain financial covenants.
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Foreign-exchange sensitivity
International operations accounted for 21% of Q3 consolidated revenue, and foreign exchange reduced International sales by $927 million year over year. A 5% adverse currency move would reduce the value of $16.5 billion of foreign funds by $825 million, while a 5% adverse move in intercompany balances would produce a $350 million loss.
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Investment valuation volatility
The recorded value of equity, equity-warrant, and convertible-debt investments was $298.8 billion, including $6.7 billion of publicly traded investments subject to market-price volatility. Investment gains or losses could materially affect reported earnings and make period-over-period comparisons less representative of operating performance.
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Regulatory and antitrust exposure
Management identifies continued regulatory and litigation exposure, including open competition and consumer-protection investigations involving Amazon stores, fulfillment and Prime, and AWS. The filing states that outcomes could require substantial future payments or changes to business practices, although no quantified loss amount was provided.
Management's outlook
Q4 2026 net sales guidance is $240.0 billion-$247.0 billion and operating income guidance is $28.5 billion-$33.5 billion. The filing materials do not provide the prior outlook needed to determine whether guidance was raised, maintained, or lowered. 2026 cash capital expenditures remain expected to be approximately $220 billion.
Earlier filings 4
10-Q · October 31, 2025
Amazon reported Q3 2025 revenue of $180.169B (up $21.292B or 13.4% YoY) and diluted EPS of $1.95 (vs $1.43 in Q3 2024). Gross margin was roughly 50.8% and operating margin compressed to ~9.7% as operating income was…
10-Q · August 1, 2025
Amazon reported Q2 2025 net sales of $167,702 million, up $19,725 million versus Q2 2024, with gross margin expanding to 51.8% and operating income rising to $19,171 million. Diluted EPS was $1.68 (vs $1.26 in Q2 2024)…
10-Q · May 2, 2025
Amazon reported Q1 net sales of $155,667,000,000, up $12,354,000,000 or ~8.6% year-over-year, with gross margin expanding to 50.6% and operating margin to 11.8%. Net income rose to $17,127,000,000 and diluted EPS was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.