AWS revenue growth accelerates as Amazon’s spending remains in focus

Technology · First reported 9 Nov, 09:02 · Updated 09:13

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Amazon Web Services reported faster third-quarter revenue growth and higher operating income, while Amazon’s large capital-spending plans continue to weigh on free cash flow. The article presents the results as evidence of demand for AWS services, alongside risks if AI demand slows.

AWS revenue rose more than 39% year over year to $46 billion in the third quarter, its fastest growth rate in nearly five years.
AWS operating income increased 55% to more than $17 billion; the unit generated about 60% of Amazon’s operating income.
Amazon raised its 2026 capital-spending forecast to $220 billion from $200 billion. The article says spending is weighing on free cash flow and that slower AI demand could extend the time needed to monetize new data centers.

Summary written by Lux AI from 2 articles

Key facts

AWS third-quarter revenue: $46 billion, up more than 39% year over year
AWS operating income: More than $17 billion, up 55%
AWS annual revenue run rate: $184 billion
AWS contracted revenue backlog: $578 billion
Amazon 2026 capital-spending forecast: $220 billion, raised from $200 billion