Key Highlights

  • Amazon (NASDAQ:AMZN) reported third quarter 2026 Net Income of USD 20.7 billion against USD 21.2 billion a year earlier, with Diluted Earnings per Share of USD 1.89 against USD 1.95, on net sales of USD 201.9 billion, up 12%.
  • Operating income rose to USD 28.1 billion from USD 17.4 billion, a 13.9% Operating Margin that Amazon calls its highest ever, so the dip in net income is not an operating weakness.
  • The prior year quarter included USD 9.5 billion of pre-tax gains from Anthropic investments, which inflated the comparison base. AWS net sales rose 39% to USD 46.0 billion with Operating Income of USD 17.8 billion.
  • Published market data show AMZN at USD 245.63, up 2.20% in the latest session, with trailing net income of USD 77.67 billion and a price to earnings ratio of 19.85. These screener figures are unverified.

Profit Down, Operations Up

Amazon's third quarter ended September 30, 2026. Net sales of USD 201.9 billion rose 12% from USD 180.2 billion, or 13% excluding a USD 0.9 billion currency headwind, and Prime Day moving into the second quarter cost about 400 basis points of growth. Operating income of USD 28.1 billion was up from USD 17.4 billion. Yet net income of USD 20.7 billion was slightly lower than the USD 21.2 billion of the third quarter of 2025. Amazon (NASDAQ:AMZN) shows how a one-off Investment gain in the prior year can make better operations look like weaker earnings. Operating income rose about 61%, our own arithmetic on the two published figures, while net income fell about 2%.

How Investment Gains Distort Net Income

Amazon holds a stake in Anthropic, and increases in the value of such investments are booked as non-operating income. The prior year quarter included USD 9.5 billion of pre-tax gains from those holdings. Without that item, last year's net income would have been materially lower, which is why a net income screen can mislead. Trailing twelve month net income of USD 77.67 billion on published market data, an unverified screener figure, includes such effects. AWS is the clearer profit engine: net sales of USD 46.0 billion grew 39%, operating income reached USD 17.8 billion against USD 11.4 billion, and Amazon cites a USD 184 billion annualised Revenue run rate.

Risks and What to Watch

Amazon guided fourth quarter net sales of USD 240.0 billion to USD 247.0 billion, growth of 12% to 16%, and operating income of USD 28.5 billion to USD 33.5 billion, against USD 25.0 billion a year earlier. Cash Capital spending of about USD 220 billion in 2026 is a large commitment that depends on cloud Demand holding up. Investment marks can swing in either direction, so reported profit may stay volatile. On screener data AMZN rose 2.20% in the latest session, and the next report is expected in early 2027, a date not confirmed. A slowdown in Advertising or E-commerce demand would also reduce the cash available to fund the buildout.

Where Things Stand

Amazon's net income slipped to USD 20.7 billion because the prior year included USD 9.5 billion of pre-tax Anthropic gains, while operating income actually jumped to USD 28.1 billion. The operating story is strong, with AWS growing 39% and margins at a record. Amazon (NASDAQ:AMZN) remains one of the largest earners in the US market, but readers should judge it by operating income and cash investment rather than by a single net income comparison.