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Negative cash balance and huge investments in artificial intelligence for Amazon

Amazon's Q3 report shows AWS revenue hitting $45.98B, beating expectations with 39% year-over-year growth and $17.8B in operating income.

Overall net sales reached $201.9B, while heavy AI infrastructure spending brought trailing free cash flow to negative $42.4B.


The company's total net revenue rose 12% to $201,9 billion, beating analysts' expectations of $202,2 billion. Earnings per share came in at $1,89, compared with an estimate of $1,97.

The great rise in internet services

The bright spot in the results was Amazon's cloud division, which beat market expectations, with revenue of $45,98 billion, up 39% year-over-year.

At the same time, operating profits in the same sector rose to $17,8 billion, a significant increase from $11,4 billion in the third quarter of 2025.

The cost of investing in artificial intelligence

What caught the eye was the company's cash flow. The free cash balance for the previous 12 months fell into the negative, to -$42,4 billion. For comparison, the corresponding period ending in September 2025, the amount was positive at $14,8 billion.

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The company said the huge spending was largely driven by investments in artificial intelligence, and reiterated that it expects to close 2026 with about $220 billion in cash and infrastructure investments.

For the fourth quarter of the year, the company is forecasting net sales between $240 billion and $247 billion.

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