Amazon Q4 sales top Street; forecasts $200 billion in 2026 cap expenditures
Amazon reported a 14% increase in its fourth-quarter net sales and the fastest growth in 13 quarters for its cloud computing unit, AWS (Amazon Web Services).
In reporting its results, the tech giant also forecasts $200 billion in capital expenditures for 2026. The amount is well above what analysts were expecting. It compares to about $131 billion in 2025.
“With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital,” CEO Andy Jassy said in a statement.
Amazon reported that its net income increased to $21.2 billion, or $1.95 per share, in the quarter ended Dec. 31, just missing estimates, compared with $20.0 billion, or $1.86 per share, in the year-ago period.
Net sales increased 14% to $213.39 billion, topping estimates of $211.33 billion. It marked the first time the company has eclipsed $200 billion in quarterly revenue. Sales at Amazon’s e-commerce unit increased 10% to $83 billion. Sales at physical stores rose 5% to $5.8 billion.
"The core retail business maintained solid growth through the all-important holiday quarter, with a notable improvement in North America profitability driven by operational leverage in fulfillment despite the expansion of ever-faster delivery," commented Emarketer principal analyst Sky Canaves.
North America sales increased 10% year-over-year to $127.1 billion. International sales increased 17% year over year to $50.7 billion, or increased.
Sales at Amazon’s cloud computing unit, AWS, increased 24% year-over-year to $35.6 billion. AWS operating income was $12.47 billion.
Amazon’s advertising revenue rose 23% to $21.32 billion, more than expected. Revenue from the company’s subscriptions services rose 14% to $13.12 billion in the quarter.
“AWS growing 24% (our fastest growth in 13 quarters), advertising growing 22%, stores growing briskly across North America and International, our chips business growing triple digit percentages year-over-year — this growth is happening because we’re continuing to innovate at a rapid rate, and identify and knock down customer problems,” stated Jassy.
Amazon reported its results about one week after it announced it was laying off 16,000 corporate employees.