Amazon Q4 2026 Earnings: Revenue Tops Estimates, AWS Drives Strong Growth, Small EPS Miss

At a glance:

• Amazon Q4 2026 results were mixed but solid, with a slight EPS miss offset by a clear top-line beat.

• EPS came in at $1.95 vs $1.96 expected, while net sales rose to $213.39bn, ahead of the $211.49bn consensus.

• Operating income ($24.98bn) and margin (11.7%) were effectively in line with expectations, signalling continued cost discipline.

• AWS was the standout, with $35.58bn in revenue beating forecasts and ex-FX growth of 24%, well above the 21% expected.

• North America retail and physical stores revenues were broadly in line with estimates, pointing to steady — not accelerating — consumer demand.

• Capex outlook surprised meaningfully: Amazon sees 2026 capex around $200bn, well above the $146.1bn consensus, reinforcing heavy investment in AWS, AI infrastructure and logistics capacity, but raising near-term margin sensitivity.

Amazon.com Inc. reported mixed but broadly solid fourth-quarter 2026 results, slightly missing on per-share earnings but topping sales expectations amid continued strength in cloud computing.

For the quarter, EPS came in at $1.95, narrowly below the consensus estimate of $1.96, while net sales reached $213.39 billion, ahead of the $211.49 billion forecast. Operating income was $24.98 billion, slightly above the $24.82 billion projected, with the operating margin holding steady at 11.7 per cent.

Key drivers included Amazon Web Services (AWS), where net sales of $35.58 billion outpaced the $34.88 billion consensus. On an ex-foreign-exchange basis, AWS revenue grew 24 per cent, well above the 21 per cent expected, underscoring continued enterprise cloud demand.

Regional and segment performance was nuanced. North America net sales of $127.08 billion were essentially in line with expectations but slightly below the $127.21 billion forecast. Physical stores (including Whole Foods) produced $5.86 billion in net sales, roughly matching the $5.88 billion estimate.

Overall, Amazon’s results suggest resilient demand across its core platforms, particularly in AWS, while retail and services businesses remained in line with expectations. Investors will be watching commentary on cost discipline, holiday season trends, and guidance for the first quarter of 2027 for clues about near-term momentum.