AMZN 2026 Q3

AWS revenue growth accelerated to 39.3% year-over-year, the sixth consecutive quarter of acceleration and the fastest growth in nearly five years, despite lapping heavy prior-year capacity additions.

“AWS grew 39.3% year-over-year, accelerating for the sixth straight quarter, our fastest growth in nearly five years.”— Andy Jassy, CEO

Management now expects AWS to grow north of 40% year-over-year in both 2027 and 2028, with a path to a trillion-dollar revenue business in five to ten years, a markedly raised long-term outlook.

“AWS can grow north of 40% in each of 2027 and 2028”— Andy Jassy, CEO

AWS core compute and storage revenue grew at its fastest rates in several years, reflecting accelerating enterprise migration and AI-driven core consumption.

Per Andy Jassy, CEO

Advertising revenue growth slowed to 12% year-over-year due to Prime Day shifting out of Q3, lapping NBA timing and a prior-year search monetization change, but management expects growth to return to high teens in Q4.

“we expect year-over-year growth will return to the high teens in Q4”— Andy Jassy, CEO

Short-term capacity for prior-generation Trainium instances now sells at a premium compared to the first half of the year, reflecting strengthening demand-driven pricing power for AI compute.

“Short-term capacity for prior-generation Trainium instances sells at a premium compared to the first half of the year.”— Andy Jassy, CEO

AWS backlog reached $578 billion, growing triple digits year-over-year and well-diversified, signaling a substantial step-up in future revenue visibility.

“Backlog is $578 billion, growing triple digits year-over-year and well-diversified.”— Andy Jassy, CEO

Backlog for prior-generation Graviton instances more than doubled quarter-over-quarter even after the Graviton5 launch, indicating demand is outpacing new-generation rollout.

“backlog for prior-generation Graviton instances still more than doubled quarter-over-quarter”— Andy Jassy, CEO

Inference now accounts for well over half of AWS's AI revenue and is growing, with management noting enterprises are still very early in deploying inference at scale, implying further demand upside.

Per Andy Jassy, CEO

Fresh groceries and Everyday Essentials grew about three times faster than the rest of the store in Q3, now representing about half of all units sold, indicating accelerating mix shift toward grocery.

Per Andy Jassy, CEO

Delivery performance hit its fastest Q3 ever globally, with over 1.5 billion items delivered same-day or overnight to Prime customers, marking a new speed record.

Per Andy Jassy, CEO

Amazon Now expanded to over 450 towns and cities with items ordered up 10x year-over-year, showing rapid acceleration in the ultrafast delivery rollout.

“The number of items ordered through Amazon Now is up 10x year-over-year.”— Andy Jassy, CEO

Amazon will begin selling Trainium chips externally starting late 2027, a new strategic move into external chip sales driven by strong customer demand for the chip's price-performance.

“We intend to do so late in 2027.”— Andy Jassy, CEO

Bedrock usage surged, with Fortune 500 spend up nearly 7x year-over-year and token volume up nearly 17x, making it the fastest-growing multi-billion-dollar service in AWS history.

“Bedrock is the fastest-growing multi-billion-dollar service in AWS's history.”— Andy Jassy, CEO

Bedrock expanded model selection by adding OpenAI, Kimi, GLM, and SpaceX models, broadening the platform beyond its prior model set and driving quick usage growth.

Per Andy Jassy, CEO

New security service AWS Continuum generated customer interest exceeding anything seen before for a new security offering, and is being integrated into major coding tools.

“The interest from customers exceeds anything we have ever seen for a new security service.”— Andy Jassy, CEO

AgentCore adoption accelerated sharply, with customers deploying twice as many agents in Q3 as in the prior three quarters combined.

“deploying 2x more agents with it in Q3 than the prior three quarters combined”— Andy Jassy, CEO

Revenue commitments for Graviton and Trainium chips each increased more than 20x year-over-year, alongside triple-digit overall chip revenue growth, far outpacing prior growth rates.

“revenue commitments for Graviton and Trainium have each increased more than 20x year-over-year”— Andy Jassy, CEO

Amazon Pharmacy growth has been accelerating each quarter through 2026, with customers up over 60% year-over-year and repeat customers up more than 50%.

“the number of customers using it is up over 60% year-over-year, with growth accelerating each quarter through 2026”— Andy Jassy, CEO

Alexa for Shopping usage jumped to 400 million customers in the last 12 months with interactions up 570% year-over-year, a sharp acceleration in adoption of the agentic shopping assistant.

“customer interactions up 570% year-over-year”— Andy Jassy, CEO

Prime Video has reached a tens-of-billions revenue run rate and turned profitable in its own right, a reversal from its prior investment-stage status.

“now profitable in its own right”— Andy Jassy, CEO

Amazon launched 34 new devices across its lineup and reports an unusually strong early customer response heading into the holidays, a notable step-up versus prior launches.

Per Andy Jassy, CEO

Worldwide operating margin reached 13.9%, the company's highest operating margin ever, with operating income up 61% year-over-year.

“which is our highest operating margin ever”— Brian Olsavsky, CFO

AWS AI operating margins are rapidly improving and now running well ahead of where core margins were at a similar point in their evolution, despite elevated memory costs and depreciation.

“rapidly improving on the AI side too, well ahead of where they were on core at a similar time of evolution”— Andy Jassy, CEO

Excluding fuel and line-haul inflation, shipping costs grew 8%, about 400 basis points slower than unit growth, showing continued cost-to-serve efficiency gains despite external cost headwinds.

“Excluding fuel and line-haul inflation, shipping costs grew 8%, or approximately 400 basis points slower than unit growth.”— Brian Olsavsky, CFO

Amazon Leo's commercial launch and associated cost capitalization are now expected to begin in Q1 2027 rather than the timing previously predicted, meaning Leo costs will continue to be expensed through Q4, pressuring Q4 operating income guidance.

“This is later than I've been predicting in earlier earnings calls.”— Brian Olsavsky, CFO

Amazon's stores business is growing meaningfully faster than competitors, adding roughly double the gross sales per quarter of its next-largest U.S. competitor and consistently taking retail market share.

“adding about double the gross sales per quarter than our next-largest competitor in the U.S.”— Andy Jassy, CEO

Amazon acquired DuckLabs so DuckDB becomes the universal SQL dialect across AWS Storage and Analytics, a new strategic move enabling zero-migration-cost querying across analytics services.

“With our acquisition of DuckLabs, DuckDB will become the universal SQL dialect of AWS Storage and Analytics”— Andy Jassy, CEO

Management plans to spend meaningfully more on CapEx in 2027 than the approximately $220 billion expected in 2026, citing clear line of sight to attractive returns on the larger investment.

“we expect to spend meaningfully more in 2027 with a clear line of sight to attractive financial returns”— Andy Jassy, CEO

Fuel inflation and higher line-haul rates are expected to be a larger cost headwind in Q4 than they were in Q3, despite a partial offsetting fuel surcharge on FBA sellers.

“it is higher in Q4 than it was in Q3”— Brian Olsavsky, CFO