AWS revenue in Amazon's third-quarter results rose 39% to $46 billion, while total revenue and earnings per share fell short of market expectations. Amazon shares declined in after-hours trading following the earnings release.
In Amazon's third quarter, AWS revenue rose 39% year on year to $46 billion, exceeding market expectations. Operating income was $28.1 billion, and the operating margin was a record 13.9%. Total revenue rose 12% year on year to $201.9 billion, but fell short of analysts' forecast of $934? billion. Diluted earnings per share were $1.89, below the market forecast of $1.96.
Capital expenditure in the third quarter reached $77.3 billion, indicating that major investment in AI infrastructure is expected to continue. Amazon shares fell 6% in after-hours trading following the earnings release.
Among related companies, Alphabet's cloud revenue rose 103% year on year to $30.7 billion, while Microsoft's cloud revenue also increased substantially to $63.9 billion. By contrast, Alphabet's total revenue did not fall below market expectations, and growth in its cloud segment provided relative support.
On the same day, founder Jeff Bezos's estimated wealth declined by approximately $8.2 billion in one day, leaving him ranked second among the world's wealthiest people.)