Key Highlights

  • Amazon (NASDAQ:AMZN) booked USD 20.7 billion of Net Income for the 2026 third quarter, down from USD 21.2 billion a year earlier. Diluted EPS of USD 1.89 compared with USD 1.95, while net sales grew 12% to USD 201.9 billion.
  • Operating income climbed to USD 28.1 billion from USD 17.4 billion, and the 13.9% Operating Margin is, in the company's words, its strongest on record, so the lower net income reflects no operating slump.
  • Last year's comparison was inflated by a USD 9.5 billion gain before tax tied to the Anthropic stake. AWS net sales grew 39% to USD 46.0 billion, with Operating Income of USD 17.8 billion.
  • Published market data put AMZN at USD 245.63, up 2.20% in the latest session, with USD 77.67 billion of net income over the trailing period and a P/E of 19.85. These screener numbers have not been verified.

Earnings Down, Operations Up

Amazon's third quarter closed September 30, 2026. Net sales grew 12% to USD 201.9 billion from USD 180.2 billion, or 13% after stripping out a USD 0.9 billion currency headwind, and a Prime Day timing shift cost roughly 400 basis points of growth. Operating income rose to USD 28.1 billion from USD 17.4 billion. Net income, however, came to USD 20.7 billion, slightly below the USD 21.2 billion posted in the same quarter of 2025. Amazon (NASDAQ:AMZN) illustrates how a non-recurring Investment gain last year can make stronger operations look like weaker earnings. By our calculation operating income jumped about 61% while net income slipped about 2%.

How Investment Gains Skew Net Income

Amazon owns a stake in Anthropic, and rising valuations of such holdings are recorded as non-operating income. Last year's quarter carried a USD 9.5 billion gain before taxes from those holdings. Without that item, prior-year net income would have been far lower, which is why a net income ranking can be misleading. Published data put trailing Earnings at USD 77.67 billion, a number we have not verified, and that total absorbs these effects. AWS is the clearer profit driver: net sales of USD 46.0 billion grew 39%, operating income reached USD 17.8 billion versus USD 11.4 billion, and management points to an annualized pace of USD 184 billion in revenue.

Risks to Monitor

For the final quarter of 2026, Amazon expects net sales between USD 240.0 billion and USD 247.0 billion, a 12% to 16% increase, and operating income of USD 28.5 billion to USD 33.5 billion, versus USD 25.0 billion a year earlier. Planned cash Capital spending of about USD 220 billion in 2026 is a major commitment that relies on cloud Demand holding up. Investment marks can move either way, so reported profit may remain volatile. AMZN climbed 2.20% in the most recent session on screener data, and timing for the next report, likely early 2027, has not been confirmed. Weaker Advertising or online retail demand would also leave less money to finance the capacity push.

Where Things Stand

Amazon's net income slipped to USD 20.7 billion because the year-ago quarter was lifted by a USD 9.5 billion gain before taxes from Anthropic, while operating income actually rose to USD 28.1 billion. The operating picture looks strong, with AWS growing 39% and margins at a record. Amazon (NASDAQ:AMZN) remains among America's biggest earners, but the better yardstick is operating profit and the scale of capital spending, instead of one net income comparison.