Amazon earnings live: Q3 earnings miss sending stock lower
Amazon shares dropped following third-quarter financial results that fell short of Wall Street expectations for both earnings and revenue. The company posted net income of US$20.7b on revenue of US$201.9b, reflecting a profit reset and a sharp drop in earnings per share from the prior period. Amazon reported its biggest cloud growth in years, but negative free cash flow ballooned during the quarter. Heavy spending on artificial intelligence fueled investor jitters, as capital expenditures remained steady and amplified concerns over elevated technology investments across major tech firms.
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- ✓ Amazon reported net income of US$20.7b on revenue of US$201.9b for the third quarter.
- ✓ Amazon earnings and revenue fell short of Wall Street expectations.
- ✓ Amazon shares sank and slipped following the earnings release.
- ✓ Amazon experienced its biggest cloud growth in years.
What changed
Amazon released its third-quarter financial results, missing Wall Street expectations and triggering a drop in share value due to heavy artificial intelligence spending and a profit reset.
Live updates
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Amazon Q3 Earnings Miss Sends Stock Lower on Heavy AI Costs
Amazon shares dropped following third-quarter financial results that fell short of Wall Street expectations for both earnings and revenue. The company posted net income of US$20.7b on revenue of US$201.9b, reflecting a profit reset and a sharp drop in earnings per share from the prior period. Amazon reported its biggest cloud growth in years, but negative free cash flow ballooned during the quarter. Heavy spending on artificial intelligence fueled investor jitters, as capital expenditures remained steady and amplified concerns over elevated technology investments across major tech firms.
Why it matters
The lower stock price and profit reset reflect growing anxiety among investors regarding the massive capital outlays required for artificial intelligence infrastructure. While cloud growth remained robust, Wall Street scrutinizes whether these heavy spending commitments will yield near-term returns. The earnings report mirrors broader market reactions to heavy tech sector investments, similar to recent reports from parent companies like Alphabet.
What is confirmed
- Amazon reported net income of US$20.7b on revenue of US$201.9b for the third quarter.
- Amazon earnings and revenue fell short of Wall Street expectations.
- Amazon shares sank and slipped following the earnings release.
- Amazon experienced its biggest cloud growth in years.
- Amazon negative free cash flow ballooned during the third quarter.
What to watch next
- Future capital expenditure announcements regarding artificial intelligence infrastructure
- Subsequent quarterly reports reflecting free cash flow trends
- Market performance of major tech stocks facing similar spending scrutiny
confidence 100%Sources used for this update (15)
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- www.zerohedge.com — Futures Rise, Oil Slides As Iran's Supreme Leader Talks Peace And Shrugs Off Ras Tanura Attack
- Yahoo Finance — Amazon earnings live: Q3 earnings miss sends stock lower
- Axios — Amazon shares sink as it spends heavily on AI
- CNBC — Amazon misses on earnings and holds capex steady, adding to AI spending jitters
- WSJ — Amazon Stock Drops on Wall Street Miss, Despite Biggest Cloud Growth in Years
- Yahoo Finance — Amazon earnings live: Q3 earnings miss sending shares lower
- www.cnbc.com — Amazon (AMZN) Q3 earnings report 2026 - CNBC
- au.finance.yahoo.com — Amazon earnings live: Q3 earnings miss sending shares lower
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