Amazon’s cloud unit is growing fast, and the cost of building it is growing too. These figures come from the earnings release Amazon filed with the SEC for the quarter that ended in September.
The good news (confirmed). In the filing, Amazon reports AWS sales of $46.0 billion, up 39% on the year. The Next Web reported the same totals and called it the cloud unit’s fastest growth in almost five years.
Cloud profit (confirmed). AWS earned $17.8 billion in operating income, up from $11.4 billion a year before. Across all of Amazon, the operating margin reached 13.9%, which the company calls its best ever. Amazon also says AWS now runs at about $184 billion a year in revenue. The Next Web listed the same profit, margin and run rate numbers.
The cost (confirmed). Over the past twelve months, Amazon’s free cash flow was negative $42.4 billion. A year earlier it was positive $14.8 billion. The swing came mostly from a $94.8 billion rise in what Amazon paid for property and equipment, and the company ties most of that rise to AI. The Next Web reported the same cash flow and spending figures.
Company profit (confirmed). Amazon’s total operating income climbed to $28.1 billion from $17.4 billion a year earlier. The Next Web carried the same comparison.
The claim. On the earnings call, CEO Andy Jassy said he expects AWS revenue to grow more than 40% in both 2027 and 2028, The Next Web reported. It is a forecast, not a result. Treat it as a target, not a promise.
Our take. AWS growth shows AI demand is real and paying off. But Amazon now spends more on buildings and chips than its business brings in. It is betting that demand lasts for years. If AI demand cools, that is a lot of data centers to fill.
What’s real here: the fastest cloud growth in almost five years, funded by a cash drain that only pays off if the AI boom keeps rolling. Watch the next two quarters of spending to see whether that bet starts to earn its keep.
Sources
- Amazon.com, Inc. Form 8-K, Exhibit 99.1: third quarter 2026 results (SEC EDGAR)
- The Next Web: coverage of Amazon third quarter 2026 earnings
By Willa Ravenwire · The AI Bandwagon