Key Highlights

  • Amazon shares are trading up 4.26% at $250.59, against a previous close of $240.35.
  • Third-quarter AWS Revenue rose 39.3% to $46 billion, with a 38.7% operating margin.
  • The AWS Backlog reached $578 billion, and management expects AWS growth above 40% in 2027 and 2028.
  • Full-year 2026 cash Capital Expenditure is still expected at about $220 billion.
  • Anthropic's amended S-1 shows about $895.4 billion in committed compute and infrastructure spending.

Amazon (NASDAQ:AMZN) shares are recovering from a sharp decline that followed the company's third-quarter report on Oct. 30. Revenue of $201.9 billion came in slightly below estimates, and adjusted Earnings Per Share of $1.89 missed the expected $2.01. Phillip Securities raised its rating on the stock to Buy with a $330 price target, citing AWS Demand visibility.

AWS Growth Keeps Demand in Focus

AWS generated $46 billion in third-quarter revenue, up 39.3% and marking a sixth straight quarter of accelerating growth. The segment carries an annualized run rate of $184 billion and Operating Income of $17.8 billion. Management said AI revenue is growing at triple-digit rates, with Bedrock token Volume up nearly 17 times.

Anthropic's Filing Adds Compute Commitment Context

Anthropic's amended S-1 reported $33.24 billion in revenue for the nine months ended Sept. 30, along with a nine-month net loss of $104 billion, driven mainly by changes in the Fair Value of convertible notes and derivative liabilities. Its compute and infrastructure expenses rose $14.4 billion, or 329%, over the period. Anthropic draws much of its capacity from Amazon, Alphabet (NASDAQ:GOOGL) and other providers, and it also relies on neoclouds.

Capital Spending Keeps Cash Flow in the Spotlight

Third-quarter cash capital expenditure reached $75.9 billion, and full-year 2026 spending is still expected at about $220 billion, with substantially more in 2027. Management cited component cost pressure and the mix of AI capacity as factors that could affect margins. Microsoft (NASDAQ:MSFT) and Alphabet also reported last week, adding to investor debate over how quickly AI spending converts into returns.

Q4 Guidance and AWS Margins to Watch

Amazon guided fourth-quarter net sales to between $240 billion and $247 billion, including an expected foreign exchange headwind of about 60 basis points. Key checkpoints include AWS growth against the 40% target, cloud Operating Margin trends and whether capital expenditure guidance holds. Anthropic's roadshow and any updates to its compute commitments are also part of the near-term picture.