Amazon misses Q3 sales, profit estimates

Amazon.com

29/10/2026 20:11

Overview
E-commerce and cloud giant's Q3 net sales rose 12% but missed analyst expectations
Q3 adjusted EPS missed analyst expectations
AWS segment sales grew 39% year-over-year, its fastest pace in nearly five years

Outlook
Amazon expects Q4 net sales between $240 bln and $247 bln, up 12%-16% y/y, compared with analysts' estimate of $244.51 bln
Company sees Q4 operating income between $28.5 bln and $33.5 bln
Amazon continues to expect 2026 cash capital expenditures of about $220 bln

Result Drivers
AWS GROWTH - AWS segment sales grew 39% year-over-year, attributed to expanded functionality and infrastructure investments, per CEO Andy Jassy
RETAIL MARKET SHARE - Co said broader selection and faster delivery helped capture retail market share and improve margins
AI INVESTMENTS - Increased capital spending on property and equipment, primarily for artificial intelligence, drove free cash flow outflow

Company press release: ID:nBw3DVMSa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Sales
Miss
$201.9 bln
$202.31 bln (48 Analysts)
Q3 EPS
Miss
$1.89
$1.96 (44 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 62 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy"
Wall Street's median 12-month price target for Amazon.com Inc is $327.50, about 28.6% above its October 28 closing price of $254.60
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads
Oct 28 - Amazon unveils new lineup of Alexa devices including redesigned Echo Show
Oct 29 - Wall Street's AI bet: Own the infrastructure, collect the rent
Oct 28 - Oracle eases AI spending worries with plan to turn cash flow positive

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)