Amazon reported third-quarter earnings on Thursday, missing analyst expectations for total revenue and earnings per share. The company's free cash flow fell to negative $42.4 billion for the trailing 12 months, compared to positive $14.8 billion for the same period ended September 30, 2025.
Amazon Web Services, the company's cloud unit, delivered the bright spot in the report. AWS beat revenue expectations and grew 39% compared to the year-ago quarter.
Amazon attributed its heavy spending to investments in AI. The company maintained its forecast for 2026 capital expenditures of about $220 billion. For the fourth quarter, Amazon expects net sales between $240 billion and $247 billion, meaning the company projects to spend nearly as much on capital expenditures for the full year as it forecasts to generate in fourth-quarter sales alone.