What happened in this Finance story?

Amazon's third-quarter numbers missed Wall Street's bar even as AWS growth surprised on the upside, and the company left its AI capital plan unchanged — sending shares down more than 7% after hours.

What is a key fact in this story? (1)

**Amazon** shares plunged more than 7% in extended trading Thursday after third-quarter earnings of $1.89 per share missed the $1.96 estimate and revenue of $201.94 billion fell short of $202.31 billion, according to LSEG.

What is a key fact in this story? (2)

**AWS** revenue reached $45.98 billion, beating the $45.29 billion StreetAccount estimate, with cloud sales soaring 39% year over year.

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Amazon misses on earnings and holds capex steady, adding to AI spending jitters — SkimNews

By CNBC · Summarized & edited by Kapil Samant · 2026-10-29

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Amazon shares plunged more than 7% in extended trading Thursday after third-quarter earnings of $1.89 per share missed the $1.96 estimate and revenue of $201.94 billion fell short of $202.31 billion, according to LSEG.
AWS revenue reached $45.98 billion, beating the $45.29 billion StreetAccount estimate, with cloud sales soaring 39% year over year.
Amazon's advertising segment produced $19.64 billion, well below the $20.82 billion StreetAccount estimate — the widest shortfall among the reported lines.
Microsoft lowered its capex forecast to $170 billion from $175 billion and Alphabet maintained $195 billion to $205 billion, against Amazon's steady $220 billion 2026 plan, with signs the hyperscaler spending splurge is moderating.
Amazon posted negative free cash flow for a second consecutive quarter, with a $42.4 billion trailing-twelve-month outflow that was 386% higher year over year and up from a $7.6 billion outflow in the prior quarter, which the company attributed mainly to AI-driven purchases of property and equipment.
Amazon expects fourth-quarter revenue of $240 billion to $247 billion, in line with the $244.51 billion consensus, in a quarter that is typically its biggest because of the holiday shopping season.
Andy Jassy said AWS revenue growth should exceed 40% next year and in 2028, adding that "our AWS investment in functionality and infrastructure is working."

Why it matters: Amazon's advertising revenue of $19.64 billion missed the $20.82 billion estimate and shares fell more than 7% after hours. Free cash flow swung to a $42.4 billion trailing outflow from $7.6 billion, which Amazon attributed to AI equipment purchases, while its $220 billion 2026 capex plan outpaces Microsoft's newly cut $170 billion forecast.