TREE NEWS reports: Amazon reported third-quarter revenue of $201.94 billion, up 12% year over year but below market expectations, with earnings per share of $1.89 also missing estimates. The company’s trailing 12-month free cash flow fell to negative $42.36 billion from positive $14.79 billion a year earlier, as capital expenditure on AI infrastructure rose. AWS revenue grew 39.3% to $45.98 billion, and CEO Andy Jassy said the AWS backlog reached $578 billion. Amazon kept its 2026 capex plan at about $220 billion and guided fourth-quarter revenue below analyst expectations, sending shares down more than 7% after hours.
Amazon Q3 revenue misses estimates as trailing 12-month free cash flow turns negative $42.4B
AI take
The headline miss matters less than the cash-flow swing: a $42.4 billion trailing free-cash-flow deficit marks a real change in how Amazon's AI buildout is being funded and absorbed. The AWS growth and the disclosed backlog are the counterweight, suggesting demand is not the constraint — conversion of that backlog into revenue while capex stays fixed near the stated plan is. The after-hours reaction points to investors repricing the cost of that buildout rather than questioning the franchise, and whether the backlog translates into margin-accretive growth is the open question.
Generated by AI for reference only.
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