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Amazon's AWS growth accelerates while Q4 outlook remains cautious amid AI spending

Oct 29, 2026, 7:46 PM EDT2 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Despite strong AWS growth, Amazon's cautious Q4 guidance and the plan for $220B in AI-related capex raise near-term margin and cash-flow concerns. The after-hours drop (~6%) reflects investor skepticism about the sustainability of profitability amid heavy investment, a pattern seen in AI-infrastructure plays and echoed by Alphabet's cash-flow concerns.

AI summary

What happened, with direct paths to the underlying reporting

Amazon reported Q3 revenue of $201.94B with AWS up 39.3% YoY and net income of $20.69B. The company guided Q4 sales of $240-247B, signaling a cautious holiday outlook despite cloud strength. Shares fell after hours as investors weighed AI-spend outlays against potential margin implications.

  • AWS grew 39.3% YoY, fastest in nearly five years.
  • Q3 revenue $201.94B; EPS $1.89; net income $20.69B.
  • Q4 net sales guidance $240-247B; consensus around $244.16B.
  • Capex guidance raised to $220B; capacity remains tight.
  • US seasonal hiring to 300k; up from 250k; shares fell after hours.

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StockNews.AI groups source reporting, classifies the event, and measures subsequent price movement. This is informational research, not investment advice. Prices may be delayed or unavailable.

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