Amazon's AWS grows 39%, but outlook disappoints investors
The company posts third-quarter revenue of $201.9 billion but misses earnings-per-share expectations. Its shares fall sharply in after-hours trading.
Archive image · Photo: Joe Mabel / Wikimedia Commons, CC BY-SA 4.0 (cropped and resized)
Amazon reported third-quarter revenue of $201.9 billion, up 12% from a year earlier but slightly below the expected $202.26 billion. Earnings per share were $1.89 versus $1.99 expected, while operating income of $28.1 billion beat forecasts of $26.1 billion. Net income fell about 2% to $20.7 billion, which Amazon attributed mainly to valuation gains on its Anthropic stake that had lifted the year-earlier result.
Cloud unit Amazon Web Services (AWS) grew revenue 39% to $46 billion, beating expectations of $45.5 billion. Its operating income rose to $17.77 billion from $11.43 billion a year earlier. North America revenue was $112.9 billion, below the expected $113.8 billion, while international revenue of $43.1 billion was in line with forecasts.
For the holiday quarter, Amazon forecast revenue of $240 billion to $247 billion, against market expectations of $244.31 billion, and operating income of $28.5 billion to $33.5 billion, versus $32.92 billion expected. Capital expenditure was $77.26 billion in the third quarter, and the full-year forecast of about $220 billion was confirmed. The shares at times fell by double digits after hours and were later down about 5.5%.