☁️Amazon Misses EPS Estimates as AWS Grows 39% to $45.98B

Your AWS bill is about to change

Amazon missed on both total revenue and earnings per share this quarter, and the market noticed. The cloud unit is the reason to keep reading. AWS beat revenue expectations and grew 39% year over year, while free cash flow dropped to negative $42.4 billion over the trailing 12 months. Amazon is spending heavily on AI, and it's spending faster than it's making money. If you run workloads on AWS, this is the part to care about. Amazon expects to end 2026 with cash capital expenditures of about $220 billion, mostly for AI infrastructure. That kind of money usually shows up as new instance types, price moves, and a push to get you onto Bedrock and custom silicon. Plan your capacity and your cost reviews around that trajectory. The numbers: net sales rose 12% to $201.9 billion, slightly under the $202.2 billion analysts expected. Fully diluted EPS came in at $1.89 against a $1.97 estimate. AWS sales hit $45.98 billion versus $45.29 billion expected, and AWS operating income grew to $17.8 billion. Amazon guided fourth-quarter net sales to $240 billion to $247 billion. Watch whether AWS growth holds near 39% as capex lands. Spend that outpaces revenue for long enough gets questioned by investors fast.