Amazon's third-quarter earnings missed analyst expectations for both earnings per share and revenue. The company reported earnings per share of $1.89, below expectations. Revenue was $201.94 billion, also below expectations.
Amazon shares fell about 6.7% in premarket trading. Investors focused on the company's heavy investment in AI infrastructure and rising debt.
Amazon expects capital expenditures of about $220 billion in 2026. Free cash flow is expected to be negative $42.4 billion. Long-term debt is also expected to rise substantially.
AWS was a bright spot. Its revenue growth accelerated to 39% year over year, bringing its annualized revenue run rate to $184 billion. Management said AWS could become a $1 trillion revenue business within five to 10 years.
Despite AWS's growth, investors remained concerned about the costs and financial leverage tied to Amazon's aggressive AI investment strategy.