Amazon Q3 Operating Income Climbs 61% as AWS Sales Jump 39%

What happened

Amazon.com on October 29, 2026 announced financial results for its third quarter ended September 30, 2026, reporting net sales of $201.9 billion, up 12% from $180.2 billion in the third quarter of 2025, as AWS segment sales climbed 39% to $46.0 billion. Third-Quarter Results North America segment sales increased 6% year-over-year to $112.9 billion, and International segment sales rose 5% to $43.1 billion, or 8% excluding foreign-exchange changes. Amazon Web Services is a cloud computing company based in Seattle.

Consolidated net sales rose 13% excluding a $0.9 billion unfavorable foreign-exchange impact. Amazon said Prime Day shifted to the second quarter in most large countries this year from entirely the third quarter in 2025, and that excluding the shift, year-over-year growth would have been approximately 400 basis points higher.

Operating income increased to $28.1 billion from $17.4 billion in the third quarter of 2025. North America operating income was $8.7 billion, up from $4.8 billion; International operating income was $1.6 billion, up from $1.2 billion; and AWS operating income was $17.8 billion, up from $11.4 billion.

Amazon said the consolidated operating margin of 13.9% was its highest ever. Net income decreased to $20.7 billion, or $1.89 per diluted share, from $21.2 billion, or $1.95 per diluted share, in the third quarter of 2025.

Amazon attributed the decrease primarily to $9.5 billion in pre-tax gains from its investments in Anthropic that were included in non-operating income in the year-earlier quarter. AWS Growth and AI Spending AWS net sales increased 39.3%, which Amazon described as the segment’s fastest growth in nearly five years, bringing the cloud unit to a $184 billion annualized revenue run rate. President and CEO Andy Jassy said AWS’s investment in functionality and infrastructure is working and pointed to projected revenue growth rates of more than 40% in both 2027 and 2028.