Amazon reported earnings in which it missed expectations for total revenue and earnings per share, and revealed higher capex spend than expected.

However, the company's cloud division, Amazon Web Services (AWS), beat revenue expectations and jumped 39 percent over this time last year. That represents the fastest growth rate in nearly five years, the company said.

In an earnings call, CEO Andy Jassy claimed that AWS could reach a trillion dollars in revenue in as little as five years.

Total company revenue hit $201.9 billion, while AWS posted $45.98bn. The cloud business' operating income hit $17.8bn, up from $11.4bn in the third quarter of 2025. The company forecast lower-than-expected fourth-quarter retail sales.

Amazon spent more than $77bn on data centers, AI servers, warehouses and other capex this quarter, above expectations - although the company said that it believes total year capex will remain in the $220bn range first shared in July.

The company spent $128bn last year.

With the heavy capex spend, primarily driven by AI costs, free cash flow fell to a negative $42.4bn for the trailing 12 months. It reported a positive free cash flow of $14.8bn for the trailing 12 months ended September 30, 2025.

Shares in the company fell seven percent on the news.

Rival hyperscaler Google saw an even more dramatic drop, as cash flow turned negative and AI ate into its search revenue. Microsoft reported positive free cash flow of $18.63bn, and saw shares rise.