Amazon misses Q3 targets but cloud unit surges 39 per cent
Amazon's cloud division grew faster than any quarter in five years, but overall earnings fell short of Wall Street expectations.
Amazon reported third-quarter profit and sales below analyst forecasts, sending shares down more than six per cent after hours. The company earned US$1.89 per share on revenue of US$201.94 billion, compared to expectations of US$1.97 and US$202.2 billion.
Amazon's cloud computing unit AWS delivered strong results, with sales up 39.3 per cent, the fastest growth rate in nearly five years. For the fourth quarter, Amazon forecast sales of US$240 to US$247 billion, a 12 to 16 per cent jump year-on-year, but analysts had expected US$244.16 billion.
The cautious outlook suggests the company is bracing for a slower finish to 2026.
- 39.3 per cent
- AWS growth rate
- US$1.89
- Q3 earnings per share
- US$201.94 billion
- Q3 revenue
- US$240-247 billion
- Q4 forecast range
Why it mattersAmazon's earnings miss and tempered guidance signal slowing growth in its core retail business, though cloud strength offers hope.
Corroborated byperthnow.com.au
