{"version":1,"type":"story","url":"https://digestai.news/story/amazon-q3-earnings-miss-estimates-as-aws-growth-accelerates-to-39-and","json":"https://digestai.news/story/amazon-q3-earnings-miss-estimates-as-aws-growth-accelerates-to-39-and.json","markdown":"https://digestai.news/story/amazon-q3-earnings-miss-estimates-as-aws-growth-accelerates-to-39-and.md","slug":"amazon-q3-earnings-miss-estimates-as-aws-growth-accelerates-to-39-and","headline":"Amazon Q3 earnings miss estimates as AWS growth accelerates to 39% and capex hits $220B","summary":"Amazon reported third-quarter earnings of $1.89 per share, missing the Zacks Consensus Estimate of $2.01. Revenue rose 12% year over year to $201.94 billion, just below the $202.11 billion expected. Operating income surged 61% to $28.1 billion, giving a record operating margin of 13.9%.\n\nAWS revenue jumped 39% to $46 billion, its fastest growth in nearly five years, with AWS operating income up 55% to $17.8 billion. CEO Andy Jassy projected AWS revenue growth exceeding 40% in both 2027 and 2028. Amazon reaffirmed a $220 billion capital expenditure outlook for 2026, mainly for AI infrastructure. Free cash flow was negative $33.5 billion in the quarter, with a trailing 12-month outflow of $42.4 billion versus a positive $14.8 billion a year earlier.","keyPoints":["Q3 EPS $1.89 vs $2.01 estimate; revenue $201.94B vs $202.11B estimate","AWS revenue up 39% YoY to $46B; operating income up 55% to $17.8B","Capex outlook $220B for 2026; Q3 free cash flow negative $33.5B"],"whyItMatters":"Amazon's heavy AI spending is pressuring cash flow even as AWS growth accelerates, a pattern also seen at Alphabet that investors are weighing against long-term cloud prospects.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["Amazon","Alphabet","Meta Platforms","Nvidia","OpenAI","Zacks"],"models":["Trainium","Bedrock"],"people":["Andy Jassy"]},"firstPublishedAt":"2026-11-02T00:16:00Z","updatedAt":"2026-11-02T00:16:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"finance.yahoo.com","title":"Zacks Investment Ideas feature highlights: Amazon, Alphabet, Meta Platforms and Nvidia","url":"https://finance.yahoo.com/markets/stocks/articles/zacks-investment-ideas-feature-highlights-081600916.html","publishedAt":"2026-11-02T00:16:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":{"title":"Amazon AI Cloud Investment Earnings Tension","url":"https://digestai.news/thread/morgan-stanley-raises-amazon-price-target-to-350-on-ai-cloud-outlook","storyCount":2},"cite":{"text":"Digest AI, \"Amazon Q3 earnings miss estimates as AWS growth accelerates to 39% and capex hits $220B\", 2 November 2026, https://digestai.news/story/amazon-q3-earnings-miss-estimates-as-aws-growth-accelerates-to-39-and","publisher":"Digest AI","title":"Amazon Q3 earnings miss estimates as AWS growth accelerates to 39% and capex hits $220B","datePublished":"2026-11-02T00:16:00Z","url":"https://digestai.news/story/amazon-q3-earnings-miss-estimates-as-aws-growth-accelerates-to-39-and"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}