Amazon Q3: Faster Deliveries Help Capture More Retail Market Share

• Net sales increased 12% to $201.9 billion in the third quarter, compared with $180.2 billion in third quarter 2025. Excluding the $0.9 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 13% compared with third quarter 2025. As a reminder, Prime Day timing shifted this year, with the event occurring in Q2 for most large countries. In 2025, Prime Day occurred entirely in Q3. Excluding this shift, third quarter year-over-year growth would have been approximately 400 basis points higher.
  • North America segment sales increased 6% year-over-year to $112.9 billion.
  • International segment sales increased 5% year-over-year to $43.1 billion, or increased 8% excluding changes in foreign exchange rates.
  • AWS segment sales increased 39% year-over-year to $46.0 billion.
• Operating income increased to $28.1 billion in the third quarter, compared with $17.4 billion in third quarter 2025.
  • North America segment operating income was $8.7 billion, compared with $4.8 billion in third quarter 2025.
  • International segment operating income was $1.6 billion, compared with $1.2 billion in third quarter 2025.
  • AWS segment operating income was $17.8 billion, compared with $11.4 billion in third quarter 2025.
• Net income decreased to $20.7 billion in the third quarter, or $1.89 per diluted share, compared with $21.2 billion, or $1.95 per diluted share, in third quarter 2025. This decrease is driven primarily by pre-tax gains of $9.5 billion in third quarter 2025 included in non-operating income (expense) from our investments in Anthropic.
• Operating cash flow increased 29% to $168.3 billion for the trailing twelve months, compared with $130.7 billion for the trailing twelve months ended September 30, 2025.
• Free cash flow decreased to an outflow of $42.4 billion for the trailing twelve months, driven primarily by a year-over-year increase of $94.8 billion in purchases of property and equipment, net of proceeds from sales and incentives. This increase primarily reflects investments in artificial intelligence. This compares to free cash flow inflow of $14.8 billion for the trailing twelve months ended September 30, 2025.

“Our AWS investment in functionality and infrastructure is working, with over 39% year-over-year revenue growth in Q3 ($184 billion revenue run rate) and projected revenue growth rates of over 40% both in 2027 and in 2028,” said Andy Jassy, President and CEO, Amazon. “Our broader selection and speedier delivery are helping us capture more retail market segment share with improving margins, and our newer businesses, ranging from Grocery to Pharmacy to Amazon Leo to Zoox are progressing encouragingly. There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years.”

Some other highlights since the company’s last earnings announcement include that Amazon:

• Delivered its fastest Q3 speeds ever for Prime members, with more than 1.5 billion items arriving same-day or overnight in the quarter.
• Continued expanding its ultra-fast delivery service, Amazon Now, which is now available in over 450 towns and cities around the world. The number of items ordered through Amazon Now is up 10x year-over-year.
• Continued growing its global Grocery business, with fresh groceries and everyday essentials growing about 3x faster than the rest of the store and representing about half of all units sold in Q3.
• Made it even easier for independent sellers to grow their businesses with new tools like Seller Assistant workflows (handles routine tasks like restocking and pricing around the clock), a plugin that integrates Seller Assistant into Amazon Quick and Anthropic’s Claude, and the ability to manage listings, orders, and profitability across multiple channels directly from Seller Central.
• Used its logistics network to donate and deliver 450,000+ emergency supplies to recovery efforts from flash floods in Nepal, wildfires in Washington, and a magnitude 7.4 earthquake in Colombia through its Disaster Relief Program.
• Announced plans to hire more than 300,000 seasonal, part-time, and full-time employees across its U.S. operations this holiday season.
• Announced $1.5 billion+ investment to raise minimum starting pay for U.S. full-time operations employees to $20 an hour, and added a new grocery discount and lifetime banking benefit for its teammates.