Amazon's AWS grew 39.3% with backlog at $578B, but trailing 12-month free cash flow is negative $42.4B and 2026 capex is guided to about $220B. AI demand is real, the cash burn is the multiple. $AMZN

What happened: Amazon reported third quarter results, with AWS revenue up 39.3% year over year and the company adding about 60,000 employees. Key numbers: AWS revenue $46.002 billion, up 39.3%; AWS operating income $17.782 billion, up 56%; total revenue $201.944 billion, up 12%; net income $20.685 billion, down 2.4%; diluted EPS $1.89; AWS backlog $578 billion; 2026 capex about $220 billion; headcount Why it matters: Amazon said AWS growth could exceed 40% in 2027 and 2028, while rising AI infrastructure spending widened trailing twelve month free cash flow net outflow to $42.4 billion.

Amazon reported third quarter results, with AWS revenue up 39.3% year over year and the company adding about 60,000 employees.

Amazon said AWS growth could exceed 40% in 2027 and 2028, while rising AI infrastructure spending widened trailing twelve month free cash flow net outflow to $42.4 billion.