Seattle:Amazon has announced a 12% increase in net sales for the third quarter of 2026, reaching $201.9 billion. This growth was largely attributed to the company's cloud computing division, Amazon Web Services (AWS), which experienced accelerated growth.

According to Anadolu Agency – English, net sales for Amazon rose from $180.2 billion in the same period of 2025. Excluding an unfavorable foreign exchange impact of $900 million, the increase was 13%. Operating income for the quarter also saw a significant rise, jumping 61% to $28.1 billion from $17.4 billion the previous year, which resulted in a record operating margin of 13.9%.

AWS reported a substantial increase in net sales, up 39.3% year-on-year to $46 billion, marking its fastest growth pace in nearly five years. This growth pushed AWS's annualized revenue run rate to $184 billion. The operating income for AWS also climbed by 55% to $17.8 billion from $11.4 billion in the third quarter of 2025.

In other segments, Amazon's North America retail business saw sales growth of 6% year-on-year to $112.9 billion, while international sales increased by 5% to $43.1 billion, or 8% when excluding currency fluctuations. However, net income slipped by 2% to $20.7 billion, or $1.89 per diluted share, primarily due to a $9.5 billion pre-tax gain from investments in AI firm Anthropic recorded in the third quarter of 2025.

Andy Jassy, president and chief executive of Amazon, highlighted the success of AWS's investment in functionality and infrastructure, noting the over 39% year-over-year revenue growth in Q3 and projecting growth rates of over 40% for 2027 and 2028. Jassy also mentioned the potential for Amazon to have two trillion-dollar revenue businesses within the next 5-10 years.

Looking ahead, Amazon expects net sales for the fourth quarter of 2026 to be between $240 billion and $247 billion, representing year-on-year growth of 12% to 16%. The company also projects operating income for the final quarter to range between $28.5 billion and $33.5 billion, compared with $25 billion in the fourth quarter of 2025. Amazon reiterated its expectation for cash capital expenditures for the full year of 2026 to reach approximately $220 billion, driven largely by investments in artificial intelligence infrastructure.