Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $201.9 billion | up 12% |
| Operating Income | $28.1 billion | up 61% |
| AWS Annualized Revenue Run Rate | $184 billion | Not stated |
| AWS Backlog | $578 billion | growing triple digits |
Guidance and outlook
- Q4 net sales are expected to be between $240 billion and $247 billion.
- Q4 operating income is expected to be between $28.5 billion and $33.5 billion.
How management sounded
Confident (+8 on our -10 to +10 scale). Management expressed high conviction in AWS growth, citing a $1 trillion revenue potential, and reported record operating margins. Management sounded more upbeat than on 92% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
AWS Growth and Capacity
Asked: Justin Post with Bank of America asked about the slowdown in quarter-over-quarter growth and capacity plans.
Answer: Andy Jassy noted that growth is accelerating and capacity additions vary by quarter, but they have strong visibility into 2027 and 2028.
Long-term Revenue Goals
Asked: Brian Nowak with Morgan Stanley asked how Amazon reaches $1 trillion in revenue in 5 to 10 years.
Answer: Andy Jassy pointed to strong growth rates in AWS, the early stage of enterprise AI adoption, and the potential for agentic applications.
AWS Margins
Asked: Mark Mahaney with Evercore ISI asked about the stability of AWS margins.
Answer: Brian Olsavsky stated that margins are driven by efficiency and custom chips, though AI mix and component pricing create some pressure.
Bedrock and Trainium
Asked: Ross Sandler with Barclays asked about the impact of Bedrock and Trainium on AWS margins.
Answer: Andy Jassy explained that using custom chips like Trainium provides structural cost advantages and better price performance.
What to watch before the next call
- The impact of AI mix on AWS operating margins.
- The timing of Amazon Leo's commercial service launch and associated costs.
- The balance between selling custom chips externally versus internal use.
