Amazon reported faster cloud growth and a record operating margin as artificial-intelligence infrastructure demand lifted its third-quarter results. AWS sales rose 39.3%, while the company maintained plans to spend about $220 billion on capital investment in 2026.

Amazon AWS Growth Reaches a Five-Year High

Amazon’s October 29 earnings release covered the quarter ended September 30. AWS generated $46.0 billion in sales, up from $33.0 billion a year earlier and representing its fastest growth in nearly five years.

AWS operating income increased 55% to $17.8 billion from $11.4 billion. Its operating margin widened to 38.7% from 34.6%, making the cloud unit the largest contributor to consolidated operating profit.

Amazon Q3 Financial Comparison (USD billions)

Net sales: 2025
$180.2B
Net sales: 2026
$201.9B
Operating income: 2025
$17.4B
Operating income: 2026
$28.1B
AWS sales: 2025
$33.0B
AWS sales: 2026
$46.0B
Source: Amazon third-quarter 2026 results, published October 29, 2026. Chart by Fusion Market News.

Record Margin Comes With Heavy AI Investment

Total net sales rose 12% to $201.9 billion. Operating income increased to $28.1 billion from $17.4 billion, and the operating margin reached a company record of 13.9%.

Trailing 12-month operating cash flow increased 29% to $168.3 billion. However, free cash flow shifted to a $42.4 billion outflow from a $14.8 billion inflow after property and equipment purchases increased by $94.8 billion, primarily for AI infrastructure.

Holiday Guidance Keeps Capital Spending Elevated

Amazon projected fourth-quarter sales of $240 billion to $247 billion and operating income of $28.5 billion to $33.5 billion. It retained its expectation for approximately $220 billion of 2026 capital expenditure.

The results add to recent signals from Microsoft’s Azure business, AI storage suppliers and data-center operators. Amazon’s results show strong cloud demand, but the cash-flow impact highlights the cost of expanding AI capacity.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.