Amazon (AMZN) Q3 earnings report 2026
Amazon shares fell over 6% after reporting disappointing Q3 earnings and significant negative free cash flow. The decline is largely attributed to massive capital expenditures on AI infrastructure, which the company plans to increase further in 2027.
Why it matters
Amazon's massive spending highlights the high-stakes financial pressure tech giants face as they race to build out AI infrastructure, signaling potential investor skepticism regarding immediate returns.
Amazon shares plunged more than 6% in extended trading Thursday after the company reported disappointing third-quarter results and ballooning negative free cash flow, reflecting its swelling AI investments.
Here's how the company did, compared with estimates from analysts polled by LSEG:
Wall Street was also looking at other key revenue numbers:
The company held steady on its capital expenditure forecast for 2026, saying it continues to expect spending will reach $220 billion this year.
Tech's hyperscalers have been on a blistering spending run to meet the surge in demand for artificial intelligence infrastructure, but signs have begun to emerge that the capex splurge is moderating. Earlier this week, Microsoft lowered its capex forecast for the year to $170 billion from $175 billion, while Alphabet maintained its guidance at $195 billion to $205 billion.
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