Amazon.com, Inc. (AMZN) Q3 2026: Revenue Growth Accelerates, Operating Income Hits Record — Strongly Positive: Slides 4.6% at Open — Post-Earnings Analysis

Amazon.com, Inc. (NASDAQ: AMZN) reported its third-quarter results for the period ending September 30, 2026, showcasing a robust performance that exceeded expectations. The company achieved net sales of $201.9 billion, marking an increase of $21.7 billion or +12% compared to $180.2 billion in the third quarter of 2025. This growth is particularly noteworthy given the unfavorable impact of foreign exchange rates, which accounted for $0.9 billion. Excluding this impact, net sales would have increased by 13%.

Key Financial Metrics

• Net Sales: $201.9 billion, up $21.7 billion or +12% YoY
• Operating Income: $28.1 billion, up $10.7 billion or +61% YoY
• Net Income: $20.7 billion, down $0.5 billion or -2% YoY
• Diluted EPS: $1.89, down from $1.95 YoY
• Operating Cash Flow: $168.3 billion, up 29% YoY
• Free Cash Flow: Outflow of $42.4 billion, compared to an inflow of $14.8 billion YoY

Analyst Opinion

This quarter is a strong positive for shareholders, driven by significant growth in operating income and a record operating margin of 13.9%. The increase in operating income to $28.1 billion from $17.4 billion in the prior year reflects Amazon's effective cost management and operational efficiencies. The company's ability to maintain a high operating margin while navigating challenges such as foreign exchange fluctuations and the timing shift of Prime Day is commendable.

However, the slight decrease in net income and diluted EPS indicates that while operational performance is strong, external factors such as prior year gains from investments in Anthropic have impacted year-over-year comparisons. Despite this, the overall trajectory remains positive, and the growth in operating cash flow suggests robust underlying business health.

Segment Performance

• North America Segment: Sales increased 6% YoY to $112.9 billion, with operating income rising to $8.7 billion from $4.8 billion.
• International Segment: Sales increased 5% YoY to $43.1 billion, with operating income growing to $1.6 billion from $1.2 billion.
• AWS Segment: Sales surged 39% YoY to $46.0 billion, with operating income increasing to $17.8 billion from $11.4 billion.

The AWS segment's performance is particularly noteworthy, achieving its fastest growth in nearly five years, which is a critical driver of Amazon's overall profitability.

Shareholder Returns and Guidance

Amazon did not announce any changes to its dividend or share buyback programs in this quarter. However, the company provided guidance for the fourth quarter of 2026, expecting net sales between $240.0 billion and $247.0 billion, representing a growth rate of 12% to 16% compared to the fourth quarter of 2025. Operating income is projected to be between $28.5 billion and $33.5 billion, compared to $25.0 billion in the same quarter last year.

Forward Catalysts

Investors should closely monitor Amazon's performance in the upcoming holiday season, particularly how the company capitalizes on its logistics capabilities and the expansion of its product offerings. The anticipated growth in advertising revenue, projected to increase in the high teens, will also be a key area to watch. Additionally, the ongoing developments in AWS and its investments in artificial intelligence could provide further growth opportunities.

In conclusion, Amazon's Q3 2026 results reflect a strong operational performance, with significant growth in both revenue and operating income. The company is well-positioned for continued success, making it an attractive investment for shareholders looking for growth in the e-commerce and cloud computing sectors.

Consolidated Statements of Operations

Note: Amounts in millions.

Consolidated Balance Sheets

Note: Amounts in millions.

Quarterly Earnings — Revenue vs. Estimate

Revenue vs. Estimate — 5 Quarters

EPS vs. Estimate — 5 Quarters

Technical Analysis — 90-Day Price Chart

Amazon.com Inc. (AMZN) is currently trading at $241.24, below its key moving averages (SMA20: $254.44, SMA50: $254.30), signaling short- to medium-term bearish momentum; the lack of a bullish crossover reinforces the downtrend. The RSI(14) at 34.3 is approaching oversold territory but remains neutral, suggesting limited immediate reversal pressure. Recent volume of 49.4M shares exceeded the 20-day average (38.8M), indicating heightened selling interest. AMZN sits near the midpoint of its 52-week range ($225.55–$287.20), with the $225–$240 zone acting as a critical support area; a breach could target the 52-week low, while resistance is layered at the SMAs and the psychological $250 level. The stock’s position below all key SMAs and weak momentum imply further consolidation unless volume-backed buying emerges.