Amazon.com Announces Third Quarter Results

Operating income was $28.1 billion and operating margin was 13.9%—Amazon’s highest operating margin ever AWS net sales increased 39.3%—its fastest growth in nearly five years—to a $184 billion annualized revenue run rate SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September 30, 2026. 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: Signed new AWS agreements with Meta, NVIDIA, OpenAI, Salesforce, Oracle, Qualcomm, Verizon, ADP, Stripe, Accenture Edge, Novo, Fanatics, Zoom, Raymond James, Prometheus AI, AppFolio, Instructure, Cognition, Sigma, Lila Sciences, The Biological Computing Co., NATO, Columbia University Irving Medical Center, and more. Drove continued rapid growth for Amazon Bedrock, AWS’s inference service, with Fortune 500 companies spending nearly 7x more year-over-year and total Bedrock token volume growing nearly 17x year-over-year. Expanded Bedrock’s leading selection of frontier and open weight models, adding OpenAI’s GPT-6 Astra, GPT-6 Sol, GPT-6 Luna, and GPT-6.1 Sol; Anthropic’s Claude Fable 5.1, Opus 5.5, Sonnet 5.5, and Haiku 5.5; Moonshot AI’s Kimi K3; SpaceXAI’s Grok 4.7; Z.ai’s GLM 5.3; and two purpose-built cybersecurity models from OpenAI. Launched built-in web search for OpenAI models on Bedrock so customers can ground responses in current information—while keeping data secure and answers accurate for time-sensitive questions without building and maintaining their own web-retrieval pipelines. Launched public preview of Bedrock Managed Agents, which is a managed service powered by OpenAI that makes it faster for enterprises to build and deploy production-ready AI agents. Added to AWS’s leadership position in open source agent-building: Released Strands harness, a fully assembled, state-of-the-art agent harness that developers can get working with a single line of code and build custom agents that can run locally, on Bedrock AgentCore, or on a provider of their choice. Strands harness lowers the cost of agent tasks by 32% through greater token efficiency than other harnesses when using the same frontier models, while achieving equal or better accuracy. Previewed Strands Box, an open source sandbox that gives developers the ability to define rules for agent behavior and access, helping to prevent autonomous agents from causing unintended harm. Strands Box is designed to enforce rules, no matter where your agent runs, whether that’s on your desktop, in agents built using AgentCore on AWS, or elsewhere. Drove continued rapid adoption of Amazon Bedrock AgentCore, AWS’s fully managed service for building, connecting, and optimizing agents securely at scale using any model and open source framework, including Strands. AgentCore is built for developers and enterprises that need the robust infrastructure, controls, and tools necessary to run agents at production scale. Tens of thousands of customers currently use AgentCore, and they deployed 2x more agents in Q3 than the prior three quarters combined. Recently topped a $1 billion annualized revenue run rate for Lambda, AWS’s flagship serverless offering, which is used by enterprises like Samsung, Volkswagen, United Airlines, Mercedes-Benz, and Booking.com. Launched Lambda Web Functions to allow developers to run scalable, responsive web applications that serve global audiences on Lambda. Web Functions gives developers the flexibility to use a variety of popular web frameworks and iterate quickly, while Lambda handles scaling, multi-region distribution, and active CPU billing. Made AWS Continuum—an AI-powered security service that automatically discovers, prioritizes, validates, and remediates software vulnerabilities at machine speed—generally available. Also announced that it’s bringing Continuum into Anthropic’s Claude Code, OpenAI’s Codex, and AWS’s Kiro. Continuum is already being used by companies like Capital One, IBM, Infor, Luminate, and Robinhood. Expanded Amazon Quick, an intelligent AI work companion, into Outlook, Word, PowerPoint, and Excel. It can also now keep running when your laptop is closed. Companies like Principal Financial Group, GoDaddy, Autodesk, BMW, Mondelēz, 3M, Southwest Airlines, EchoStar, and DXC are choosing Quick because it’s built for work, connects to their company data, and keeps that data secure. Open-sourced Kiro Crew, a persistent workspace that remembers a developer’s context, learns how they work, and coordinates multiple agents to work in parallel and run scheduled and long-running tasks unattended. Acquired DuckLabs, the company behind the open source data analysis tool DuckDB. With DuckDB, AWS customers will be able to write their SQL analytics query once and then execute using any AWS analytics service, so for the first time in analytics, customers will have zero migration or portability costs between query engines. Made it even easier to adopt its custom AI accelerator, Trainium, with TorchNeuron. TorchNeuron lets developers run existing PyTorch code (which most already use) on Trainium without rewriting a thing. Increased selection from notable brands like Banana Republic, Jean Paul Gaultier fragrances, Carolina Herrera fragrances, La-Z-Boy, The Farmer’s Dog, and FAO Schwarz by more than 20% year-over-year. Announced that Amazon helped U.S. customers save billions—averaging over $1,000 per customer each year for 100 million+ customers—through everyday low prices, deals, free delivery, fuel savings, and prescription savings. 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. Continued to drive rapid adoption of Alexa for Shopping, its agentic shopping assistant, which was used by 400 million+ customers in the last 12 months, with customer interactions up 570% year-over-year. Added 100+ new capabilities to Alexa for Shopping so tasks that used to require multiple clicks—like building gift lists, adjusting Subscribe & Save deliveries, managing payments and memberships, and adding new delivery addresses—can now be completed with simple conversations. Made Amazon Pharmacy even faster with 3-hour prescription delivery now available in more than 350 cities. The number of customers using Amazon Pharmacy is up over 60% year-over-year, and repeat customers are up more than 50% year-over-year. Introduced Amazon Ads Agent for advertisers, bringing together Amazon’s full offering under a single, AI-first platform. Backed by trillions of shopping, browsing, and streaming signals, Amazon Ads Agent supports advertisers at every step with insights, answers, and the ability to take action on their behalf. Launched Full-Funnel Campaigns in Amazon Ads Agent for all U.S. advertisers, bringing sponsored ads, display, video, and streaming TV into a single campaign. Advertisers provide initial inputs, then Amazon’s AI plans, executes, and continuously optimizes the rest. Kicked off the fifth season of Thursday Night Football on Prime Video, averaging 17.7 million viewers through six games according to Nielsen, its best start ever and a 16% increase over last year’s full-season average. Debuted the second season of NBA on Prime in more than 200 countries, attracting more than two million viewers in the U.S. during its season-opening doubleheader, more than doubling last year’s full-season average, according to Nielsen. Drew 66 million viewers globally for Season Four of Reacher on Prime Video in its first 28 days. Exceeded $1.2 billion in global box office so far in 2026 for Amazon MGM Studios, as audiences flocked to movies like Project Hail Mary and Verity. Drove strong early demand for the launch of its most powerful devices lineup yet, with 34 new products across Echo, Kindle, Amazon Alexa Tablets, Fire TV, Ring, Blink, and Bee. Expanded Alexa+ to Australia, India, and Japan, and made Alexa+ available for free to U.S. customers with compatible Fire TV devices. Remains on track to begin initial service of its Amazon Leo low Earth orbit satellite service later this year, and signed a strategic agreement with AT&T, which will be the first major U.S. telecom provider to offer Leo connectivity to enterprise and public-sector customers. Began offering paid rides to customers in Zoox autonomous robotaxis in Las Vegas and started testing in San Diego and Houston. Zoox is now operating in 12 U.S. cities. Introduced Built Together, a new $1 billion community investment in U.S. data center communities to provide increased support for priorities communities value most, including free community college and trades training, energy and water efficiency upgrades for schools, community buildings and homes, and flexible annual funding for local priorities like roads, fire equipment, affordable housing, and food security. 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. Financial Guidance The following forward-looking statements reflect Amazon.com’s expectations as of October 29, 2026, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below. Fourth Quarter 2026 Guidance Net sales are expected to be between $240.0 billion and $247.0 billion, or to grow between 12% and 16% compared with fourth quarter 2025. This guidance anticipates an unfavorable impact of approximately 60 basis points from foreign exchange rates. Advertising revenue grew 12% year-over-year excluding changes in foreign exchange rates in the third quarter 2026 impacted by timing anomalies primarily related to Prime Day (and a couple other timing factors). We expect year-over-year advertising revenue to grow in the high teens in fourth quarter 2026. Operating income is expected to be between $28.5 billion and $33.5 billion, compared with $25.0 billion in fourth quarter 2025. We continue to expect 2026 cash capital expenditures to be approximately $220 billion. This guidance assumes, among other things, no impact from energy derivative contract remeasurements, and that no additional business acquisitions, restructurings, or legal settlements are concluded. Conference Call Information A conference call will be webcast live today at 2:00 p.m. PT/5:00 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results. Forward-Looking Statements These forward-looking statements are inherently difficult to predict. Actual results and outcomes could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, security incidents, system interruptions, government regulation and taxation, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings. Additional Information Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site. About Amazon Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews. AMAZON.COM, INC. Consolidated Statements of Cash Flows (in millions) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2025 2026 2025 2026 2025 2026 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 61,453 $ 80,927 $ 82,312 $ 90,106 $ 78,677 $ 70,464 OPERATING ACTIVITIES: Net income 21,187 20,685 56,478 113,587 76,482 134,779 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 16,796 20,949 46,285 59,882 61,916 79,353 Stock-based compensation 4,847 5,406 15,070 15,476 20,065 19,873 Non-operating expense (income), net (10,112 ) 694 (14,187 ) (68,319 ) (14,673 ) (69,012 ) Deferred income taxes 10,130 5,033 10,648 35,522 9,040 36,344 Changes in operating assets and liabilities: Inventories (827 ) (4,516 ) (6,103 ) (4,712 ) (5,169 ) (1,611 ) Accounts receivable, net and other (1,977 ) (2,127 ) (1,855 ) (16,081 ) (5,878 ) (21,559 ) Other assets (4,039 ) (4,637 ) (10,412 ) (13,165 ) (14,602 ) (18,385 ) Accounts payable 2,151 1,502 166 2,207 8,892 13,272 Accrued expenses and other (1,999 ) (3,848 ) (11,012 ) (13,911 ) (6,970 ) (7,918 ) Unearned revenue (632 ) 3,281 (23 ) 3,355 1,588 3,164 Net cash provided by (used in) operating activities 35,525 42,422 85,055 113,841 130,691 168,300 INVESTING ACTIVITIES: Purchases of property and equipment (35,095 ) (77,259 ) (92,297 ) (175,670 ) (120,131 ) (215,192 ) Proceeds from property and equipment sales and incentives 867 1,381 2,446 3,482 4,228 4,535 Acquisitions, net of cash acquired, non-marketable investments, and other, net (786 ) (23,986 ) (2,438 ) (63,753 ) (4,973 ) (65,156 ) Sales and maturities of marketable securities 16,367 23,677 35,545 65,559 39,222 74,400 Purchases of marketable securities (7,426 ) (37,455 ) (38,556 ) (86,717 ) (51,089 ) (102,931 ) Net cash provided by (used in) investing activities (26,073 ) (113,642 ) (95,300 ) (257,099 ) (132,743 ) (304,344 ) FINANCING ACTIVITIES: Proceeds from short-term debt, and other 3,223 5,307 7,131 20,693 9,685 22,882 Repayments of short-term debt, and other (1,826 ) (3,927 ) (5,300 ) (19,609 ) (7,907 ) (22,735 ) Proceeds from long-term debt — 48,102 746 115,100 746 130,027 Repayments of long-term debt (1,008 ) (7 ) (3,759 ) (2,759 ) (6,259 ) (4,021 ) Principal repayments of finance leases (351 ) (433 ) (1,172 ) (1,296 ) (1,505 ) (1,681 ) Principal repayments of financing obligations (82 ) (107 ) (276 ) (281 ) (698 ) (333 ) Net cash provided by (used in) financing activities (44 ) 48,935 (2,630 ) 111,848 (5,938 ) 124,139 Foreign currency effect on cash, cash equivalents, and restricted cash (397 ) 72 1,027 18 (223 ) 155 Net increase (decrease) in cash, cash equivalents, and restricted cash 9,011 (22,213 ) (11,848 ) (31,392 ) (8,213 ) (11,750 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 70,464 $ 58,714 $ 70,464 $ 58,714 $ 70,464 $ 58,714 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt, net of capitalized interest $ 249 $ 1,172 $ 1,008 $ 2,182 $ 1,651 $ 2,632 Cash paid for operating leases 4,155 4,602 11,475 12,406 14,700 15,969 Cash paid for interest on finance leases 76 116 219 303 289 379 Cash paid for interest on financing obligations 52 89 159 215 217 252 Cash paid for income taxes, net of refunds 1,136 1,315 6,774 5,293 10,920 6,814 Assets acquired under operating leases 5,057 7,407 13,999 21,316 18,188 27,247 Property and equipment acquired under finance leases, net of remeasurements and modifications 977 1,472 1,968 3,600 2,413 4,543 Increase (decrease) in property and equipment acquired but not yet paid 3,341 853 4,849 21,473 7,095 26,779 AMAZON.COM, INC. Consolidated Statements of Operations (in millions, except per share data) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2026 2025 2026 Net product sales $ 74,058 $ 75,296 $ 206,274 $ 224,202 Net service sales 106,111 126,648 297,264 359,867 Total net sales 180,169 201,944 503,538 584,069 Operating expenses: Cost of sales 88,670 94,573 246,455 277,814 Fulfillment 27,679 29,997 78,248 86,919 Technology and infrastructure 28,962 34,814 79,122 97,539 Sales and marketing 11,686 11,649 32,865 33,661 General and administrative 2,875 2,701 8,468 8,076 Other operating expense (income), net 2,875 134 3,382 671 Total operating expenses 162,747 173,868 448,540 504,680 Operating income 17,422 28,076 54,998 79,389 Interest income 1,100 1,187 3,251 3,617 Interest expense (538 ) (1,691 ) (1,595 ) (3,805 ) Other income (expense), net 10,186 (703 ) 14,052 68,359 Total non-operating income (expense) 10,748 (1,207 ) 15,708 68,171 Income before income taxes 28,170 26,869 70,706 147,560 Provision for income taxes (6,910 ) (6,180 ) (14,141 ) (33,939 ) Equity-method investment activity, net of tax (73 ) (4 ) (87 ) (34 ) Net income $ 21,187 $ 20,685 $ 56,478 $ 113,587 Basic earnings per share $ 1.98 $ 1.92 $ 5.31 $ 10.55 Diluted earnings per share $ 1.95 $ 1.89 $ 5.22 $ 10.42 Weighted-average shares used in computation of earnings per share: Basic 10,674 10,797 10,638 10,770 Diluted 10,845 10,929 10,815 10,903 AMAZON.COM, INC. Consolidated Statements of Comprehensive Income (in millions) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2026 2025 2026 Net income $ 21,187 $ 20,685 $ 56,478 $ 113,587 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $27, $141, $(181), and $62 (690 ) (107 ) 4,159 (1,670 ) Unrealized gains (losses) on net investment hedging instruments, net of tax of $0, $(37), $0, and $(82) — 119 — 263 Available-for-sale debt securities: Change in net unrealized gains (losses), net of tax of $(3,797), $(12,233), $(3,820), and $(26,268) 12,397 35,974 12,474 78,788 Less: reclassification adjustment for net losses (gains) included in “Other income (expense), net,” net of tax of $512, $(1), $1,326, and $1,141 (1,795 ) 4 (4,266 ) (3,333 ) Net change 10,602 35,978 8,208 75,455 Other, net of tax of $0, $0, $0, and $(1) 1 1 — — Total other comprehensive income (loss) 9,913 35,991 12,367 74,048 Comprehensive income $ 31,100 $ 56,676 $ 68,845 $ 187,635 AMAZON.COM, INC. Segment Information (in millions) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2026 2025 2026 North America Net sales $ 106,267 $ 112,852 $ 299,222 $ 333,172 Operating expenses 101,478 104,129 281,075 307,059 Operating income $ 4,789 $ 8,723 $ 18,147 $ 26,113 International Net sales $ 40,896 $ 43,108 $ 111,170 $ 125,094 Operating expenses 39,697 41,528 107,460 120,373 Operating income $ 1,199 $ 1,580 $ 3,710 $ 4,721 AWS Net sales $ 33,006 $ 45,984 $ 93,146 $ 125,803 Operating expenses 21,572 28,211 60,005 77,248 Operating income $ 11,434 $ 17,773 $ 33,141 $ 48,555 Consolidated Net sales $ 180,169 $ 201,944 $ 503,538 $ 584,069 Operating expenses 162,747 173,868 448,540 504,680 Operating income 17,422 28,076 54,998 79,389 Total non-operating income (expense) 10,748 (1,207 ) 15,708 68,171 Provision for income taxes (6,910 ) (6,180 ) (14,141 ) (33,939 ) Equity-method investment activity, net of tax (73 ) (4 ) (87 ) (34 ) Net income $ 21,187 $ 20,685 $ 56,478 $ 113,587 Segment Highlights: Y/Y net sales growth: North America 11 % 6 % 10 % 11 % International 14 5 12 13 AWS 20 39 18 35 Consolidated 13 12 12 16 Net sales mix: North America 59 % 56 % 59 % 57 % International 23 21 22 21 AWS 18 23 19 22 Consolidated 100 % 100 % 100 % 100 % AMAZON.COM, INC. Consolidated Balance Sheets (in millions, except per share data) December 31, 2025 September 30, 2026 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 86,810 $ 55,783 Marketable securities 36,219 58,443 Inventories 38,325 42,632 Accounts receivable, net and other 67,729 98,242 Total current assets 229,083 255,100 Property and equipment, net 357,025 508,862 Operating leases 86,054 96,910 Goodwill 23,273 23,743 Other assets 122,607 358,775 Total assets $ 818,042 $ 1,243,390 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 121,909 $ 158,715 Accrued expenses and other 75,520 77,559 Unearned revenue 20,576 21,708 Total current liabilities 218,005 257,982 Long-term lease liabilities 87,339 98,824 Long-term debt 65,648 173,125 Other long-term liabilities 35,985 99,858 Commitments and contingencies Stockholders’ equity: Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) — — Common stock ($0.01 par value; 100,000 shares authorized; 11,246 and 11,326 shares issued; 10,731 and 10,811 shares outstanding) 112 113 Treasury stock, at cost (7,837 ) (7,837 ) Additional paid-in capital 140,024 154,924 Accumulated other comprehensive income (loss) 28,230 102,278 Retained earnings 250,536 364,123 Total stockholders’ equity 411,065 613,601 Total liabilities and stockholders’ equity $ 818,042 $ 1,243,390 AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except per share data) (unaudited) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Y/Y % Change Cash Flows and Shares Operating cash flow -- trailing twelve months (TTM) $ 121,137 $ 130,691 $ 139,514 $ 148,531 $ 161,403 $ 168,300 29 % Operating cash flow -- TTM Y/Y growth 12 % 16 % 20 % 30 % 33 % 29 % N/A Purchases of property and equipment, net of proceeds from sales and incentives -- TTM $ 102,953 $ 115,903 $ 128,320 $ 147,299 $ 169,007 $ 210,657 82 % Free cash flow -- TTM (1) $ 18,184 $ 14,788 $ 11,194 $ 1,232 $ (7,604 ) $ (42,357 ) (386 )% Common shares and stock-based awards outstanding 10,952 10,955 10,953 10,949 11,027 11,034 1 % Common shares outstanding 10,660 10,687 10,731 10,754 10,783 10,811 1 % Stock-based awards outstanding 292 268 222 195 244 223 (17 )% Stock-based awards outstanding -- % of common shares outstanding 2.7 % 2.5 % 2.1 % 1.8 % 2.3 % 2.1 % N/A Results of Operations Worldwide (WW) net sales $ 167,702 $ 180,169 $ 213,386 $ 181,519 $ 200,606 $ 201,944 12 % WW net sales -- Y/Y growth, excluding F/X 12 % 12 % 12 % 15 % 20 % 13 % N/A WW net sales -- TTM $ 670,038 $ 691,330 $ 716,924 $ 742,776 $ 775,680 $ 797,455 15 % WW net sales -- TTM Y/Y growth, excluding F/X 11 % 11 % 12 % 13 % 15 % 15 % N/A Operating income $ 19,171 $ 17,422 $ 24,977 $ 23,852 $ 27,461 $ 28,076 61 % F/X impact -- favorable (unfavorable) $ 153 $ 129 $ 23 $ (33 ) $ (105 ) $ (17 ) N/A Operating income -- Y/Y growth (decline), excluding F/X 30 % (1 )% 18 % 30 % 44 % 61 % N/A Operating margin -- % of WW net sales 11.4 % 9.7 % 11.7 % 13.1 % 13.7 % 13.9 % N/A Operating income -- TTM $ 76,190 $ 76,201 $ 79,975 $ 85,422 $ 93,712 $ 104,366 37 % Operating income -- TTM Y/Y growth, excluding F/X 40 % 25 % 16 % 19 % 23 % 37 % N/A Operating margin -- TTM % of WW net sales 11.4 % 11.0 % 11.2 % 11.5 % 12.1 % 13.1 % N/A Net income $ 18,164 $ 21,187 $ 21,192 $ 30,255 $ 62,647 $ 20,685 (2 )% Net income per diluted share $ 1.68 $ 1.95 $ 1.95 $ 2.78 $ 5.75 $ 1.89 (3 )% Net income -- TTM $ 70,623 $ 76,482 $ 77,670 $ 90,798 $ 135,281 $ 134,779 76 % Net income per diluted share -- TTM $ 6.55 $ 7.08 $ 7.17 $ 8.37 $ 12.44 $ 12.37 75 % (1) Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.” AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions) (unaudited) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Y/Y % Change Segments North America Segment: Net sales $ 100,068 $ 106,267 $ 127,083 $ 104,143 $ 116,177 $ 112,852 6 % Net sales -- Y/Y growth, excluding F/X 11 % 11 % 10 % 12 % 16 % 6 % N/A Net sales -- TTM $ 404,078 $ 414,808 $ 426,305 $ 437,561 $ 453,670 $ 460,255 11 % Operating income $ 7,517 $ 4,789 $ 11,472 $ 8,267 $ 9,123 $ 8,723 82 % F/X impact -- favorable (unfavorable) $ (46 ) $ (53 ) $ (73 ) $ (41 ) $ (6 ) $ 43 N/A Operating income -- Y/Y growth (decline), excluding F/X 49 % (14 )% 25 % 42 % 21 % 81 % N/A Operating margin -- % of North America net sales 7.5 % 4.5 % 9.0 % 7.9 % 7.9 % 7.7 % N/A Operating income -- TTM $ 28,277 $ 27,403 $ 29,619 $ 32,045 $ 33,651 $ 37,585 37 % Operating margin -- TTM % of North America net sales 7.0 % 6.6 % 6.9 % 7.3 % 7.4 % 8.2 % N/A International Segment: Net sales $ 36,761 $ 40,896 $ 50,724 $ 39,789 $ 42,197 $ 43,108 5 % Net sales -- Y/Y growth, excluding F/X 11 % 10 % 11 % 11 % 15 % 8 % N/A Net sales -- TTM $ 149,582 $ 154,590 $ 161,894 $ 168,170 $ 173,606 $ 175,818 14 % Operating income $ 1,494 $ 1,199 $ 1,040 $ 1,424 $ 1,717 $ 1,580 32 % F/X impact -- favorable (unfavorable) $ 338 $ 302 $ 319 $ 347 $ (43 ) $ (125 ) N/A Operating income -- Y/Y growth (decline), excluding F/X 324 % (31 )% (45 )% 6 % 18 % 42 % N/A Operating margin -- % of International net sales 4.1 % 2.9 % 2.1 % 3.6 % 4.1 % 3.7 % N/A Operating income -- TTM $ 5,127 $ 5,025 $ 4,750 $ 5,157 $ 5,380 $ 5,761 15 % Operating margin -- TTM % of International net sales 3.4 % 3.2 % 2.9 % 3.1 % 3.1 % 3.3 % N/A AWS Segment: Net sales $ 30,873 $ 33,006 $ 35,579 $ 37,587 $ 42,232 $ 45,984 39 % Net sales -- Y/Y growth, excluding F/X 17 % 20 % 24 % 28 % 37 % 39 % N/A Net sales -- TTM $ 116,378 $ 121,932 $ 128,725 $ 137,045 $ 148,404 $ 161,382 32 % Operating income $ 10,160 $ 11,434 $ 12,465 $ 14,161 $ 16,621 $ 17,773 55 % F/X impact -- favorable (unfavorable) $ (139 ) $ (120 ) $ (223 ) $ (339 ) $ (56 ) $ 65 N/A Operating income -- Y/Y growth, excluding F/X 10 % 11 % 19 % 26 % 64 % 55 % N/A Operating margin -- % of AWS net sales 32.9 % 34.6 % 35.0 % 37.7 % 39.4 % 38.7 % N/A Operating income -- TTM $ 42,786 $ 43,773 $ 45,606 $ 48,220 $ 54,681 $ 61,020 39 % Operating margin -- TTM % of AWS net sales 36.8 % 35.9 % 35.4 % 35.2 % 36.8 % 37.8 % N/A AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except employee data) (unaudited) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Y/Y % Change Net Sales Online stores (1) $ 61,485 $ 67,407 $ 82,988 $ 64,254 $ 70,432 $ 68,470 2 % Online stores -- Y/Y growth, excluding F/X 10 % 8 % 8 % 9 % 15 % 2 % N/A Physical stores (2) $ 5,595 $ 5,578 $ 5,855 $ 5,785 $ 5,794 $ 5,710 2 % Physical stores -- Y/Y growth, excluding F/X 7 % 7 % 5 % 4 % 4 % 2 % N/A Third-party seller services (3) $ 40,348 $ 42,486 $ 52,816 $ 41,578 $ 46,780 $ 46,492 9 % Third-party seller services -- Y/Y growth, excluding F/X 10 % 11 % 10 % 12 % 16 % 10 % N/A Advertising services (4) $ 15,694 $ 17,703 $ 21,317 $ 17,243 $ 19,809 $ 19,637 11 % Advertising services -- Y/Y growth, excluding F/X 22 % 22 % 22 % 22 % 26 % 12 % N/A Subscription services (5) $ 12,208 $ 12,574 $ 13,122 $ 13,427 $ 13,730 $ 14,006 11 % Subscription services -- Y/Y growth, excluding F/X 11 % 10 % 12 % 12 % 12 % 12 % N/A AWS $ 30,873 $ 33,006 $ 35,579 $ 37,587 $ 42,232 $ 45,984 39 % AWS -- Y/Y growth, excluding F/X 17 % 20 % 24 % 28 % 37 % 39 % N/A Other (6) $ 1,499 $ 1,415 $ 1,709 $ 1,645 $ 1,829 $ 1,645 16 % Other -- Y/Y growth, excluding F/X 18 % 7 % 7 % 25 % 23 % 17 % N/A Stock-based Compensation Expense Cost of sales $ 250 $ 197 $ 182 $ 171 $ 208 $ 170 (14 )% Fulfillment $ 880 $ 685 $ 641 $ 601 $ 764 $ 656 (4 )% Technology and infrastructure $ 3,655 $ 2,697 $ 2,459 $ 2,286 $ 3,701 $ 3,409 26 % Sales and marketing $ 1,207 $ 832 $ 753 $ 663 $ 845 $ 762 (8 )% General and administrative $ 542 $ 436 $ 362 $ 311 $ 520 $ 409 (6 )% Total stock-based compensation expense $ 6,534 $ 4,847 $ 4,397 $ 4,032 $ 6,038 $ 5,406 12 % Other WW shipping costs $ 23,370 $ 25,384 $ 31,492 $ 25,709 $ 27,873 $ 28,295 11 % WW shipping costs -- Y/Y growth 6 % 8 % 10 % 14 % 19 % 11 % N/A WW paid units -- Y/Y growth (7) 12 % 11 % 12 % 15 % 17 % 12 % N/A WW seller unit mix -- % of WW paid units (7) 62 % 62 % 61 % 60 % 61 % 61 % N/A Employees (full-time and part-time; excludes contractors & temporary personnel) 1,546,000 1,578,000 1,576,000 1,575,000 1,595,000 1,638,000 4 % Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth 1 % 2 % 1 % 1 % 3 % 4 % N/A (1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” (2) Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” (3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. (4) Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. (5) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services. (6) Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements. (7) Excludes the impact of Whole Foods Market. Amazon.com, Inc. Certain Definitions Customer Accounts References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period. Seller Accounts References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period. AWS Customers References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period. Units References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards. Amazon Investor Relations amazon-ir@amazon.com amazon.com/ir Amazon Public Relations amazon-pr@amazon.com amazon.com/pr Source: Amazon.com, Inc.