AWS revenue rises 39% to $46 billion in the third quarter of 2026

The results

Amazon reported results for the third quarter of 2026, the quarter ended September 30, on October 29, 2026. Amazon Web Services (AWS) had revenue of $46.0 billion, up 39% from a year earlier, and operating income of $17.8 billion. AWS delivered more than half of Amazon's total operating profit. Its annualized revenue run rate has reached $184 billion.

Spending on infrastructure

• Over the past twelve months, Amazon spent $210.7 billion net on property and equipment, up 82%.
• For the third quarter alone, comparison data put Amazon's capital spending at $77.3 billion, up from $35.1 billion a year earlier.
• The company expects about $220 billion in cash capital spending in 2026.

Outlook and comments

Amazon expects AWS growth above 40% in 2027 and 2028. Chief executive Andy Jassy said the company's investment in AWS capabilities and infrastructure is paying off. He also said there has never been a trillion-dollar revenue business, and that Amazon may end up with two in the next five to ten years.

Margins and backlog

A comparison by Stock Titan put AWS's operating margin at 38.7% against 34.6% a year earlier, and its signed but undelivered backlog at about $496 billion as of June 30, which predates this quarter. Companies define backlog differently, so those numbers cannot be compared directly across cloud providers.

What it means

AI demand is a major driver of cloud growth, and providers are spending very large sums on data centers, chips and power. Growth of nearly 40% on a base this large is notable, but the spending carries risk: if demand grows slower than capacity, margins and returns can suffer.

What to watch

• Whether capital spending rises further in 2027.
• How AWS's growth compares with Azure and Google Cloud, covered in our report on Q3 2026 cloud earnings compared.
• Power and chip supply, which limit how fast new capacity can come online.

For another sign of the data center build-out, see our report on Nvidia's record quarter.