On October 29th local time, Amazon released its financial report for the third quarter.
Financial reports show that in the third quarter, Amazon's net sales amounted to $201.9 billion, a year-on-year increase of 12%. Net profit decreased by 2.3% to $20.7 billion, mainly due to the inclusion of pre-tax earnings of $9.5 billion from investments in Anthropic in non-operating income for the same period in 2025.
The most impressive growth came from AWS, with net sales in the third quarter increasing by 39% to $46 billion, mainly due to the growth of core services and AI services. During the subsequent financial report conference call, Amazon's President and CEO, Andy Jassy (Andy Jassy), stated that AWS's current annual revenue has reached $184 billion. Andy Jassy also provided new forecasts, expressing confidence that AWS's growth rate could exceed 40% in 2027 and 2028, and it is expected to become a business with a trillion-dollar revenue scale within the next 5 to 10 years.
In the third quarter, the chip business saw triple-digit year-on-year growth, with the revenue commitments for Graviton and Trainium each exceeding 20 times the previous year's level. Andy Jassy stated that Trainium has a significant price-performance advantage over other alternatives, making it attractive to customers.
In terms of e-commerce business, Amazon emphasized speed and efficiency. Andy Jassy stated that in the third quarter, over 1.5 billion items were delivered on the same day or the next day. Amazon also continued to expand its Super Fast Delivery service Amazon Now, which now covers more than 450 towns around the world. In the third quarter, the number of items ordered through Amazon Now increased tenfold year-on-year.
In addition, Amazon continues to develop its global fresh grocery business, with the growth rate of fresh food and daily necessities being about three times that of other store businesses, accounting for approximately half of all products sold in the third quarter.
Amazon CFO Brian Olsavsky (Brian Olsavsky) mentioned that in terms of logistics fulfillment, there are higher transportation costs due to fuel inflation and increased rates for overland transportation. In response to these challenges, Amazon reduced its overall service costs in the third quarter through more efficient inventory placement, shorter transportation distances, and package consolidation. Additionally, robots and AI are generating revenue, and Amazon expects this revenue to grow compoundingly in the future. Amazon is also developing a basic robot model to make programming faster and teaching robots to perform increasingly complex physical tasks, with the goal of providing a large number of useful robots on a widespread scale.
Although various performances continued to grow, Amazon's stock price fell by more than 7% after the market closed on that day. The reason lies in Amazon's persistent high capital expenditures.
During the financial report conference call, Brian Orsavsky stated that capital expenditures in the third quarter amounted to $75.9 billion, which were mainly related to AWS and AI in order to support strong customer demand. Capital expenditures in the second quarter were $53.1 billion, representing a quarter-on-quarter increase of 42.9%.
Brian Olsavsky also announced Amazon's future plans, stating that the company will continue to make significant investments in areas such as AI, as Amazon believes this represents a tremendous opportunity. Amazon expects its cash capital expenditures to be around $220 billion in 2026, with the majority of that being allocated to AWS. It is also anticipated that expenditures will increase significantly in 2027.
For the performance of the next quarter, Amazon stated that its net sales for the fourth quarter are expected to be between $240 billion and $247 billion, or an increase of 12% to 16% compared to the fourth quarter of 2025.
