Amazon misses Q3 revenue and EPS estimates, shares fall ~6.4% after hours as capex balloons to $77.3B
What happened
Amazon reported third-quarter 2026 results after the close on October 29, missing on both lines: EPS of $1.89 versus the $1.96-$1.97 consensus, and revenue of $201.9 billion versus $202.2 billion expected. Shares fell roughly 6.4% in after-hours trading. The bigger shock was capital expenditure of $77.3 billion, far above the $58.67 billion consensus, leaving the company with a trailing-twelve-month free cash flow outflow of $42.4 billion. Bright spots: AWS grew 39% to $46.0 billion, its fastest rate in nearly five years, and Amazon held its full-year 2026 capex plan at about $220 billion.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Amazon (AMZN) - the reporter
- Alphabet (GOOGL) - shares the AI-capex punishment narrative, already down ~12% in the session
- Microsoft (MSFT) - the favorable counterexample, reinforcing its relative valuation; the broader Mag 7 / Nasdaq complex via the 'AI spending must pay for itself' regime
- AI infrastructure suppliers (Nvidia, Broadcom, memory names) as capex-growth sustainability is questioned.