Amazon reported third-quarter earnings that missed analysts' expectations for both total revenue and earnings per share. Its cloud unit, Amazon Web Services, beat revenue expectations and grew 39% from the year-ago quarter.
Free cash flow fell to negative $42.4 billion for the trailing 12 months. The report says that compares with positive free cash flow of $14.8 billion for the trailing 12 months ended September 30, 2025, meaning Amazon spent far more cash than it generated. Amazon said its investments in AI drove much of that spending.
Amazon reiterated that it expects cash capital expenditures of about $220 billion for 2026. It forecast fourth-quarter net sales between $240 billion and $247 billion. The report notes that Amazon expects to spend nearly as much on capital expenditures over the full year as it expects to earn in sales in the fourth quarter alone.
The report also says other figures in the earnings, including the company's cash burn, worried investors.