Amazon earnings disappoint investors; stock falls in after-hours trading

Amazon reported disappointing third-quarter 2026 results: revenue of $201.9 billion versus a forecast of $202.1 billion, and earnings per share of $1.89 versus $1.96. The stock is down about 7% in after-hours trading.

Amazon reported its financial results for the third quarter of 2026 on Thursday evening, and investors reacted with disappointment. The company reported revenue of $201.9 billion, compared to analyst expectations of about $202.1 billion. Earnings per share came in at $1.89, versus forecasts of about $1.96 per share. On the positive side, AWS cloud services recorded revenue of $45.98 billion, above the forecast of $45.48 billion. However, advertising revenue totaled $19.64 billion, below the forecast of $20.82 billion. Amazon's stock is down about 7% in after-hours trading. The results come amid growing demand for cloud services from AI companies like Anthropic and OpenAI, alongside concerns about the impact of high spending on cash flow. Anthropic, in which Amazon has invested, filed a prospectus this week for an IPO on Nasdaq and committed to purchasing at least $110 billion in computing services from Amazon over the coming years. The key question is whether growth in cloud operations justifies continued increases in infrastructure investment.