This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Walmart is the world’s second-largest retailer, offering both physical retail and e-commerce. Until February 2025, it was America's largest company by revenue. Groceries currently account for a large portion of the company's sales, but the company also sells a wide range of general merchandise, through Walmart U.S., Walmart International, and Sam’s Club warehouse stores. Walmart also offers health care products and pharmacy services. Founded in 1962, the company changed its name from Wal-Mart Stores to Walmart in 2018.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Amazon, which debuted on the Fortune 500 in 2002, snared the top spot on the strength of 12% year-over-year revenue growth. It also posted record profits as its juggernaut AWS cloud-services business expanded its margins.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are automotive retail, general merchandisers, internet retail, and specialty retail.

Fortune Sector Leaders: Retailing

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

WMA 2024-Amazon

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-Amazon

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

G500-2023-Amazon

The e-commerce giant fell two spots on this year's Global 500: Revenue growth, at 9% year over year, was the slowest in Amazon’s history as a public company to date. 
<ul> 
 	<li>Amazon swung from a hefty profit in 2021 to a $2.7 billion loss in 2022. Slowing growth in e-commerce and in the Amazon Web Services (AWS) cloud division contributed to the slump. CEO Andy Jassy said in April 2023 that he anticipated a “pending deluge” in spending on A.I. and machine learning that would revive growth at AWS.</li> 
 	<li>The company announced layoffs of about 27,000 employees in 2023, with cuts concentrated in cloud computing and human resources.</li> 
 	<li>The company closed its physical bookstores and other retail shops in March 2022 to focus on other store formats.</li> 
 	<li>In July 2022 Amazon announced that it would pay $3.5 billion to acquire primary care provider One Medical, adding the company to its growing health care services portfolio.</li> 
</ul>

The 300 companies on this list are transforming industries from the inside out.

Fortune collaborated with the Diligent Institute to rank the most innovative boards of directors among S&P 500.

Modern Board 2023-Amazon

The e-commerce juggernaut has fallen slightly in the Modern Board 25 rankings but still earned a spot for its accomplishments in gender representation and diversity. Its 11-member board includes founder and former CEO Jeff Bezos and CEO Andy Jassy, the longtime <a href="https://fortune.com/company/amazon-com/">Amazon</a> Web Services head who succeeded Bezos. The board also boasts ex-CEOs such as PepsiCo’s Indra Nooyi and MTV’s Judith McGrath; as well as Edith Cooper, a former Goldman Sachs executive and cofounder of professional coaching platform Medley; and former U.S. Deputy Attorney General Jamie Gorelick. Amazon has ramped up cost-cutting measures recently and laid off 9,000 employees <a href="https://www.aboutamazon.com/news/company-news/update-from-ceo-andy-jassy-on-amazons-operating-plan-and-additional-role-eliminations">in April</a>, following an earlier round of 18,000. It’s also dealing with unionization efforts at several of its warehouses. On the sustainability front, the retail behemoth says it’s on a path to powering operations solely with renewable energy by 2025, noting that several of its AWS data center regions are powered by at least 95% renewable energy.

Fortune Modern Board 25

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Amazon

The e-commerce giant occupies the No. 2 spot on our list for the fourth consecutive year, though revenue growth, at 9% year over year, was the slowest in Amazon’s history as a public company to date. 
<ul> 
 	<li>Amazon swung from a hefty profit in 2021 to a $2.7 billion loss in 2022. Slowing growth in e-commerce and in the Amazon Web Services (AWS) cloud division contributed to the slump. CEO Andy Jassy said in April 2023 that he anticipated a “pending deluge” in spending on A.I. and machine learning that would revive growth at AWS.</li> 
 	<li>The company announced layoffs of about 27,000 employees in 2023, with cuts concentrated in cloud computing and human resources. -</li> 
 	<li>Amazon lost half of its market value between April 2022 and the end of the year, though its stock has since partly rebounded. The company was hit by a tech-stock rout that also affected many of its rivals.</li> 
 	<li>The company closed its physical bookstores and other retail shops in March 2022 to focus on other store formats.</li> 
 	<li>In July 2022 Amazon announced that it would pay $3.5 billion to acquire primary care provider One Medical, adding the company to its growing health care services portfolio.</li> 
</ul>

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

WMAC-2022-02-Amazon

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

G500 2022-02-Amazon

2021 was a tumultuous year for the e-commerce giant. Founder Jeff Bezos formally stepped down as president and CEO on July 5, 2021, and Andy Jassy, longtime head of the Amazon Web Services (AWS) cloud juggernaut, took the reins. The company struggled with labor shortages, a massive surge in employee turnover, and the biggest unionization push since its founding. But those obstacles didn’t stop Amazon from growing its headcount by a net of 310,000 employees in 2021. It also increased its minimum hourly wage from $15 to $18 in September of that year. Amazon’s streaming service sowed the seeds for further growth as the company acquired Hollywood studio MGM in an $8.5 billion deal. Amazon Prime Day sales in 2021 reached a record-breaking total of $11.19 billion. And overall, the retail and cloud-computing powerhouse grew revenue by more than 21% and brought in $33.3 billion in profits, a stunning 56.4% increase over 2020.

Modern Board 2022-Amazon

Amazon’s board includes an impressive array of directors, and scores high on gender equality, age dispersion, and board expertise. In addition to founder and former CEO Jeff Bezos and current CEO Andy Jassy, the longtime Amazon Web Services leader who succeeded Bezos in July 2021, the board includes former CEOs Indra Nooyi (Pepsi), Judith McGrath (MTV Networks), and Patricia Stonesifer (Martha’s Table, a nonprofit). Wendell Weeks, current CEO of Corning, is also on the board. 
 
General (Retired) Keith Alexander, who headed the U.S. Cyber Command in the Obama administration and is a former director of the National Security Agency, joined the board in September 2020. Daniel P. Huttenlocher, dean of the MIT Schwarzman College of Computing, has been a director since September 2016. 
 
Amazon’s growth as of late has been even better than expected; as of April 2022, its stock price was up 50% since the start of 2020. In March 2022, it closed the <a href="https://fortune.com/2022/03/17/amazon-closes-deal-to-acquire-mgm-studios/">acquisition of the entertainment studio MGM</a>, a move intended to support its content business. The company has also announced its first stock split since 1999, scheduled to take place in June 2022, which <a href="https://www.fool.com/investing/2022/03/15/alphabet-amazon-stock-splits-what-you-should-know/">some analysts say</a> will set the stock price up for future gains alongside the company’s significant growth.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Amazon

2021 was a tumultuous year for the e-commerce giant. Founder Jeff Bezos formally stepped down as president and CEO on July 5, 2021, and Andy Jassy, longtime head of the Amazon Web Services (AWS) cloud juggernaut, took the reins. The company struggled with labor shortages, a massive surge in employee turnover, and the biggest unionization push since its founding. But those obstacles didn’t stop Amazon from growing its headcount by a net of 310,000 employees in 2021. It also increased its minimum hourly wage from $15 to $18 in September of that year. Amazon’s streaming service sowed the seeds for further growth as the company acquired Hollywood studio MGM in an $8.5 billion deal. Amazon Prime Day sales in 2021 reached a record-breaking total of $11.19 billion. And overall, the retail and cloud-computing powerhouse grew revenue by more than 21% and brought in $33.3 billion in profits, a stunning 56.4% increase over 2020.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

WMAC 2021-02-Amazon

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-003-Amazon

Walmart had better watch out. A company this big shouldn’t be able to grow this fast—but Amazon’s 38% revenue growth in 2020 has the Seattle company creeping closer to the top of the Fortune 500. For years a money loser, Amazon earned $21.3 billion in profit on more than $386 billion in annual sales. As the pandemic forced everyone online, the Everything Store won big. The e-tailer’s Prime delivery and entertainment service gained 50 million subscribers year over year, for a total of more than 200 million global customers. CEO Jeff Bezos picked a banner year to step down from leading day-to-day operations; he handed the title to Andy Jassy, former boss of the ultra-profitable Amazon Web Services unit, in the second half of 2021.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-02-Amazon

Walmart had better watch out. A company this big shouldn’t be able to grow this fast—but Amazon’s 38% revenue growth in 2020 has the Seattle company creeping closer to the top of the Fortune 500. For years a money loser, Amazon earned $21.3 billion in profit on more than $386 billion in annual sales. As the pandemic forced everyone online, the Everything Store won big. The e-tailer’s Prime delivery and entertainment service gained 50 million subscribers year over year, for a total of more than 200 million global customers. CEO Jeff Bezos picked a banner year to step down from leading day-to-day operations; he’ll be handing the title to Andy Jassy, currently boss of the ultra-profitable Amazon Web Services unit, in the second half of 2021.

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC 2021-Amazon

100 Fastest-Growing Companies

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-009-Amazon

A company this big shouldn’t be able to grow this fast—but Amazon’s 21% revenue growth in 2019, to $281 billion, is the reason the Seattle company has moved up four spots on the Global 500. For years a money loser, Amazon earned $11.6 billion in profit on more than $280 billion in annual sales. Key drivers for the so-called Everything Store’s growth? Its consumer bundle keeps expanding. And its Prime delivery and entertainment subscription service counts more than 150 million global customers. As in prior years, the company’s Amazon Web Services unit outpaced the company as a whole, growing revenue at a 37% clip to $35 billion. More recently, the novel coronavirus pandemic accelerated many of the company's big bets: In the company's fiscal second quarter alone (ended June 30, 2020), sales leapt up 40%, year over year, to $88.9 billion. Profits for the quarter, meanwhile, doubled, to $5.2 billion.

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future 50-2020-Amazon

E-commerce and cloud-storage giant Amazon has been one of the biggest beneficiaries of changing consumer behavior during the COVID-19 pandemic. Its sales jumped 35% to more than $260 billion in the first nine months of 2020, as people stopped going to stores and spent more online. The company’s market-leading cloud-computing division, Amazon Web Services, has also benefited in 2020 as the hosting platform for everything from Netflix to Zoom.

The Future 50

This year's Fortune 500 marks the 66th running of the list.

F500-2020-002-Amazon

A company this big shouldn’t be able to grow this fast—but Amazon’s 21% revenue growth in 2019, to $281 billion, is the reason the Seattle company has catapulted to No. 2 on the Fortune 500. It's now ranked behind only its greatest rival and the world’s biggest retailer: Walmart. For years a money loser, Amazon earned $11.6 billion in profit on more than $280 billion in annual sales. Key drivers for the so-called Everything Store’s growth is that its consumer bundle keeps expanding. Its Prime delivery and entertainment subscription service counts more than 150 million global customers. As in prior years, the company’s Amazon Web Services unit outpaced the company as a whole, growing revenue at a 37% clip to $35 billion.

Collectively, the ranked companies produced a three-year average shareholder return of 19%, vs. 11% for the S&P 500.

Fastest Growing Companies 2020-10-Amazon

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

This year's Fortune 500 marks the 65th running of the list.

Everybody loves an up-and-comer: 2019's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Everybody loves an up-and-comer: 2018's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Everybody loves an up-and-comer: 2017's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fastest-growing Companies

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Amazon.com was incorporated in 1994; in 2026, it became the world's biggest company by revenue. It is the largest e-commerce retailer in the U.S. and a player in the grocery business, owing in part to its ownership of the Whole Foods supermarket chain. The company offers cloud services through its Amazon Web Services segment. Amazon develops and produces media content, much of which it streams through its Amazon Prime membership program; in 2021, it acquired the studio Metro-Goldwyn-Mayer (MGM). Amazon also makes and sells electronic devices including the Kindle e-book reader and Echo “smart speaker.”

Q3 2026

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Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

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Amazon (AMZN): Company Profile, Stock Price, News, Rankings

legacy

Amazon

amazon

Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Q3 2026 Financial Results Teleconference. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question and answer session. Today's call is being recorded. For opening remarks, I'll be turning the call over to the Vice President of Investor Relations, Mr. Dave Fildes. Thank you, sir. Please go ahead.

Hello, and welcome to our Q3 2026 Financial Results Conference Call. Joining us today to answer your questions is Andy Jassy, our CEO, and Brian Olsavsky, our CFO. As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results, as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2025. Our comments and responses to your questions reflect management's views as of today, October 29, 2026, only, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings.

During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast, and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions.

Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates and energy prices, changes in global economic and geopolitical conditions, tariff and trade policies, resource and supply volatility, including for memory chips, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. I'll turn the call over to Andy.

Thanks, Dave. We're reporting $201.9 billion in revenue, up 12% year-over-year. Operating income was $28.1 billion, up 61% year-over-year. Q3 was another strong quarter for Amazon. In AWS, our plan is working. Despite lapping a comparable year-over-year period where we added a lot of capacity, AWS grew 39.3% year-over-year, accelerating for the sixth straight quarter, our fastest growth in nearly five years. Backlog is $578 billion, growing triple digits year-over-year and well-diversified. We're installing an AI accelerator about every 14 seconds, and almost as fast as we install capacity, customers are gobbling it up. Our core compute and storage revenue grew at their fastest rates in several years.

Our operating margins have long been strong on our core offering, but rapidly improving on the AI side too, well ahead of where they were on core at a similar time of evolution. Even with heightened component costs like memory and significant depreciation from the CapEx we're investing. We continue to accelerate our CapEx payback and have even more conviction than we already had that the investment we're making in AWS will yield a much larger revenue and free cash flow-generating business than we would have imagined a couple of years ago, with strong return on invested capital. We have a compelling flywheel spinning in AWS. Borrowing from Jim Collins' flywheel definition in "Good to Great," where if you do A, you almost can't help but do B, and if you do B, you almost can't help but do C, and so on.

In AWS, having the leading functionality, security, and operational performance can't help but drive customers to run their apps and store their data in AWS, which can't help but drive AWS AI demand because customers prefer their production inference to be near the rest of their data and apps, which can't help but drive core AWS demand because AI uses core for work like reinforcement learning, post-training, and tool usage, which can't help but drive reinvestment back into our broader AWS functionality. This is a different model than primarily hosting GPUs or renting short-term data center capacity. This is a long-term platform strategy that broadly helps customers invent and evolve their customer experiences, operate stably, and build a reliable partnership they can grow for many years. It also yields very attractive long-term economics for us, regardless of supply scarcity.

There are many examples that illustrate our progress in AWS, but I'll share a few. On the core side, it's important to remember that the vast majority of global IT spend, about 85%, is still on premises, and we're in a 10- to 20-year cycle where that equation will flip to the cloud. Conventional wisdom has been that linchpin workloads like mainframes or storage area networks would never move to the cloud, but these workloads are moving as AWS has built unique cloud substitutes and AI-driven migration capabilities to make this transition much easier. Enterprises get the benefits of less CapEx, lower operating costs, faster innovation, better developer productivity, and data accessibility to more easily leverage AI. Our core business has attractive margins because we've learned to run it very efficiently over the last 20 years.

As our core business grows, we keep reinvesting in our core and AI functionality. For example, as customers generate increasingly more data and seek to get value from it in analytics and AI, the complexity of moving data between data stores and analytics engines is onerous and expensive. With our acquisition of DuckLabs, DuckDB will become the universal SQL dialect of AWS Storage and Analytics, simplifying data processing with a modern analytics engine that is fast, simple to use and ubiquitous, and where customers will be able to write SQL queries once and then execute using any AWS analytics service. For the first time in analytics, customers will have zero migration or portability costs between query engines. This is a big deal, and you can imagine how it will also help agents do efficient querying as well.

On the AI side, we continue to expand the capabilities of our inference service, Amazon Bedrock, and it is leading to remarkable growth, with Fortune 500 companies spending nearly 7x more on Bedrock year-over-year and total Bedrock token volume growing nearly 17x year-over-year. Bedrock is the fastest growing multi-billion dollar service in AWS's history. We have recently added OpenAI models to Bedrock and usage is growing quickly. We also just added Bedrock-managed versions of Kimi, GLM, and SpaceX models. You cannot have a conversation about AI today without talking about security, and it is another reason customers keep choosing Bedrock. We have designed Bedrock so customers' data remains secure and private. Inputs and outputs are never shared with model providers or used to train base models.

When customers tune a foundation model, we create a private copy specifically for their use, and data is fully encrypted both in transit and at rest. As frontier models get more powerful, they are surfacing software vulnerabilities previously not found and at unprecedented rates. We built AWS Continuum to discover, prioritize, validate, and remediate code vulnerabilities at machine speed. It is already being used by customers like Capital One, IBM, Infor, Luminate, and Robinhood. In Q3, we announced that we will integrate it into the tools where code is being written, Anthropic's Claude Code, OpenAI's Codex, and AWS's Kiro. The interest from customers exceeds anything we have ever seen for a new security service. Agents continue to be deployed at accelerating rates, many of which are being built on AgentCore's building blocks.

Tens of thousands of customers currently use AgentCore, deploying 2x more agents with it in Q3 than the prior three quarters combined. In addition to building their own purpose-built agents, most companies will also use turnkey agentic services, and we offer several that customers love. Kiro for coding, Amazon Connect for contact center agents, and AWS Transform for migrations. They are all iterating quickly and picking up customer momentum. As is Amazon Quick, our intelligent AI work companion, which is growing very rapidly as large enterprises like Mondelez, EchoStar, 3M, Southwest Airlines, and DXC Technology are choosing Quick because it is purpose-built for work with no compromises on customer data. Finally, our chips business continues to grow triple-digit percentages year-over-year, and revenue commitments for Graviton and Trainium have each increased more than 20x year-over-year.

AI continues to be a tailwind for Graviton because post-training reinforcement learning and agent tool use is mostly done on CPUs versus AI accelerators, and Graviton is the strongest CPU chip, offering up to 30%-40% better price performance than alternatives. Customers using our custom silicon saved more than $2 billion in Q3 alone, and we just open sourced TorchNeuron so developers can run existing PyTorch code, which most already use on Trainium without rewriting a thing. As we launch new generations of chips, demand for prior generations remains strong. After our launch of Graviton5, backlog for prior generation Graviton instances still more than doubled quarter-over-quarter. Short-term capacity for prior generation Trainium instances sell at a premium compared to the first half of the year. With Trainium demand so strong, customers continue encouraging us to make it available outside of AWS.

We intend to do so late in 2027. Overall demand for AWS capacity remains exceptionally strong. Enterprises are still very early in using inference at scale, and yet inference already accounts for well over half of AWS's AI revenue and growing, and we have a lot of training revenue as well. We still expect 2026 cash CapEx of approximately $220 billion, the majority for AWS, and expect to spend meaningfully more in 2027 with a clear line of sight to attractive financial returns, as I laid out on our last call. AWS is a $184 billion annualized revenue run rate business, and yet the opportunity remains extraordinary.

With our continued pace of innovation, new core and AI functionality, enterprises wanting to run their core and AI workloads in AWS, and the amount of capacity that we're adding each year, we believe that AWS can grow north of 40% in each of 2027 and in 2028 and be a trillion-dollar revenue business in the next five to 10 years. We're in the very early days of this inflection. Our strategy is working, and I expect it will for the foreseeable future. In stores, I think some folks are sleeping a bit on how much progress that business has made and what it's become the last few years. I'm not aware of another retail business approaching Amazon's revenue size, hundreds of billions of dollars, with double-digit operating margins inclusive of ads that's growing at this pace.

Year to date, units have grown nearly 15% year-over-year, and that's on an enormous base, having sold more than 30 billion items last year. In absolute dollar terms, we've added more than $90 billion in gross sales in the trailing 12 months, and we're growing meaningfully faster than other retail competitors, adding about double the gross sales per quarter than our next largest competitor in the U.S. and consistently taking retail market segment share. Over the past few years, our North America and International segments have each expanded operating margins by nearly 10 percentage points, which enables us to reinvest in making the customer experience even better. Remember, it's still early. The significant majority of retail, nearly 80%, currently occurs in physical stores. That will eventually flip to e-commerce over time.

We're helping enable this shift by rapidly building out our efficient and speedy fulfillment network, providing delightful customer experiences while driving significant free cash flow and return on invested capital. Each of our priorities, from faster delivery, to cost to serve, to groceries and pharmacy, to AI shopping, are force multipliers, and we're firing on all cylinders. Our delivery speeds keep getting faster as we invest in our same-day network, as well as our Amazon Now and Amazon Prime Air ultrafast services. We had our fastest Q3 ever globally, and we delivered more than 1.5 billion items to Prime customers same day or overnight in Q3. We're energized by the customer response to our rapid rollout of Amazon Now around the world. It's now available in over 450 towns and cities, and the number of items ordered through Amazon Now is up 10x year-over-year.

We're on track to reduce cost to serve per unit for the fourth consecutive year, which enables us to continue meeting or beating competitors' prices, and cost effectively deliver a broad selection of fresh groceries and Everyday Essentials. Increasing speed is fueling our grocery business, including perishables and Everyday Essentials, and gross sales grew to nearly $250 billion in the trailing 12 months. In Q3, fresh groceries and Everyday Essentials grew about three times faster than the rest of our store, representing about half of all units sold. Customers who shop perishables with same-day delivery buy nearly seven times more Everyday Essential units than those who don't. Active grocery customers shop nearly four times more non-grocery categories like home and apparel, and spend over two times more on those categories compared to non-grocery customers. Amazon Pharmacy is also growing fast.

The number of customers using it is up over 60% year-over-year, with growth accelerating each quarter through 2026. Repeat customers grew more than 50% year-over-year. J.D. Power recently ranked Amazon Pharmacy the top mail-order pharmacy for the third year in a row, and we keep making it even better, now offering three-hour prescription delivery in more than 350 cities. Over 400 million customers have used Alexa for Shopping, our agentic shopping assistant, in the last 12 months, with customer interactions up 570% year-over-year. U.S. customers using Alexa for Shopping are spending 50% more per order than those who don't. It researches products, compares options, checks a full year of price history, gets personalized gift recommendations, and tracks deals and price drops on customers' behalf.

Though we anticipate working with horizontal agents, we believe Alexa for Shopping is going to be the primary shopping agent customers use to shop Amazon. Having a shopping assistant constantly by your side as you browse, get inspired, have questions on product detail pages, and that you can simply ask to buy something based on your prior purchases that already have your history, your shipping address, and payment info, is uniquely helpful and convenient for customers. Moving to Amazon Ads, we generated $19.6 billion of revenue in Q3, up 12% year-over-year. Though there were some timing anomalies in this past quarter, we continue to be pleased with the overall momentum across our ad offerings. I'll mention three items impacting the growth rates.

First, we shifted Prime Day into Q2 for most countries, moving significant sales and ad revenue that were in Q3 2025 into Q2 2026, a tailwind to our Q2 2026 rate and a headwind to Q3 2026. For advertising, that was 850 basis points sequential impact to Q3 year-over-year growth. Second, Q2 2026 included the first season of NBA on Prime, which last year's Q2 didn't have. Q3 does not include any NBA, it starts in Q4. Third, in Q3 2025, we changed our search engine marketing programs to drive more traffic to search pages on Amazon. It's a better experience for customers, and we also monetize that traffic at a higher rate. That helped accelerate advertising revenue growth starting a year ago, and we started lapping that in Q3. We expect year-over-year growth will return to the high teens in Q4.

The natural question is whether agentic shopping from external horizontal agents is meaningfully impacting Amazon Ads. The answer is no. Few customers are doing much shopping this way yet, as the experience is still not great nor more convenient than coming to a retailer directly to research or one-click order there. Q3 was chock-full of innovation from our ads team that we expect to have impact in the coming months. Headlined by Amazon Ads Agent, which brings together our full advertising offering under a single AI-first platform. Backed by trillions of shopping, browsing, and streaming signals, it supports advertisers at every step with insights, answers, and the ability to optimize and act on their behalf. We also launched full-funnel campaigns in Amazon Ads Agent, bringing sponsored ads, display, video, and streaming TV into a single campaign.

Advertisers provide initial inputs, including budget and duration, and Amazon's AI plans, executes, and continually optimizes the rest. We're continuing to see momentum in several other areas. I'll mention just a few. Prime Video has emerged as a significant business with a revenue run rate in the tens of billions of dollars, now profitable in its own right. We have momentum with hit shows like Carrie, The Summer I Turned Pretty, The Boys, Off Campus, Reacher, and Fallout. Breakout movies like Project Hail Mary, along with compelling live sports, including Thursday Night Football, off to its best start ever in 2026, NBA on Prime, NASCAR, the Masters, and UEFA Champions League soccer. We recently launched our most powerful devices lineup yet with 34 new products across Echo, Kindle, Alexa tablets, Fire TV, Ring, and Bee.

It's early, but we're off to a very strong start and excited for more customers to get their hands on these as we head into the holidays. Finally, Amazon Leo remains on track to begin initial service this year. We're heading into one of our most exciting stretches of the year with both re:Invent and the holidays. I want to thank our teammates for their hard work and invention to make customers' lives better and easier every day. What we're building at Amazon is unlike anything that's ever been seen before. There has never been a business with a trillion dollars of annual revenue. Amazon is on a path to have two of them in AWS and stores. It's rare, and we're energized by what's ahead. Over to you, Brian.

Thank you, Andy. Let's start with our top-line financial results. Worldwide revenue was $201.9 billion, a 12% increase year-over-year, and a 13% increase year-over-year excluding the impact of foreign exchange. Worldwide operating income was $28.1 billion, with an operating margin of 13.9%, which is our highest operating margin ever. Starting with our North America and International segments results. First, let me remind you that Prime Day shifted this year, with the sales event occurring in Q2 for most of our largest countries, including the U.S. In 2025, Prime Day was entirely in Q3. Excluding the impact of this Prime Day time change, the third quarter 2026 year-over-year growth would be approximately 400 basis points higher. In Q3, we saw strong customer engagement and a continuation of trends from the first half of the year.

In the North America segment, third quarter revenue was $112.9 billion, an increase of 6% year-over-year. International segment revenue was $43.1 billion, an increase of 8% year-over-year, excluding the impact of foreign exchange. Worldwide paid units grew 12% year-over-year. Prime remains a key pillar of our business. Hundreds of millions of Prime members are responding to our combination of vast selection, low prices, and record delivery speeds. Over the past year, monthly orders of fresh groceries placed by our Prime members for free same-day delivery have more than tripled. Let's shift to profitability. North America segment operating income was $8.7 billion, with an operating margin of 7.7%. International segment operating income was $1.6 billion, with an operating margin of 3.7%. In our fulfillment network, the team navigated higher transportation costs from fuel inflation and higher line haul rates.

Even with these headwinds, we still lowered our overall cost to serve in Q3 through better inventory placement, shorter shipping distances, and package consolidation. Shipping costs increased 11% year-over-year versus a 12% increase in units. Excluding fuel and line haul inflation, shipping costs grew 8%, or approximately 400 basis points slower than unit growth. Robotics and AI are delivering measurable gains through productivity and employee safety, which we'll expect to compound in the future. In 2026, we doubled our fleet of robotic arms like Cardinal and Sparrow. We're also developing robotics foundation models that enable faster programming and teach robots increasingly complex physical tasks, with the goal of delivering useful robotics at scale. Looking ahead, we see meaningful opportunities to improve productivity across our global fulfillment network and lower our cost to serve while continuing to get products to customers faster.

Our operating margin may fluctuate quarter-to-quarter, but we're focused on sustained long-term improvement in our cost to serve per unit. Moving to our AWS segment, revenue was $46 billion and grew 39.3% year-over-year, driven by both core and AI services. We added $3.8 billion in quarter-over-quarter revenue. AWS now has an annualized revenue run rate of $184 billion. Customers continue to move to the cloud and scale their use of AWS core services, and increasingly, customers who want the full benefits of AI are accelerating their transition to the cloud. We see a strong linkage between AI spend and growth in our revenue for core services. As customers invest in AI, we see a corresponding increase in core consumption, and we expect that relationship to strengthen as more AI workloads move into production and drive additional demand for compute, storage, and networking.

AWS operating income was $17.8 billion, with an operating margin of 38.7%, reflecting strong growth and our focus on driving efficiencies. Our investments in custom chips and custom networking, along with software and process improvements, are helping us optimize capacity and build a more cost-efficient infrastructure. As we've long said, we expect AWS operating margins to fluctuate, driven in part by the level of investment we're making at any point in time. Our AI offerings are gaining traction with customers, with AI revenue growing triple digits year-over-year. Bedrock has been a significant growth driver. Turning to our cash CapEx, which was $75.9 billion in Q3. This primarily relates to AWS and AI as we invest to support strong customer demand.

We continue to make significant investments, especially in AI, as we believe it to be a massive opportunity with the potential to drive long-term revenue and free cash flow, as well as return on invested capital.

I'll finish with our financial guidance for Q4. Q4 net sales are expected to be between $240 billion and $247 billion. We estimate the year-over-year impact of changes in foreign exchange rates based on current rates, which we expect to be a headwind of approximately 60 basis points in the quarter. Q4 operating income is expected to be between $28.5 billion and $33.5 billion. I'll mention one factor impacting our Q4 guidance. Amazon Leo's commercial service is on track to begin initial service this year, and we expect to begin capitalizing certain costs in Q1 of next year, including production and launch costs. This is later than I've been predicting in earlier earnings calls. As a result, we will continue to expense the majority of Leo-related costs in Q4. We're ready to serve customers this holiday season and to support the millions of customers building with AWS.

I want to thank our teams across Amazon for their hard work and focus on customers. Our commitment to elevating the customer experience remains the only reliable way to create lasting value for our shareholders. With that, let's move on to your questions.

Thank you. At this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question. If you would like to ask a question, please press star one on your keypad. We ask that when you pose your question, you pick up your handsets to provide optimum sound quality. Once again, to initiate a question, please press star, then one on your touch tone telephone at this time. Please hold while we poll for questions. Thank you. Our first question comes from the line of Justin Post with Bank of America. Please proceed with your question.

Great. Thank you. Andy, continued to see the cloud business accelerate, which is really nice, but the quarter-over-quarter growth slowed. I am just wondering if there is any call-outs there on the customer side or token costs or anything that kind of drove that and how you are thinking about the capacity adds in Q4. Brian, maybe just any impact of fuel costs on your guidance in Q4. Thank you.

I will start with the growth question. We are really pleased with the growth. 39.3% on a business that has got a $184 billion annual revenue run rate is quite unusual. Our fastest growth in about five years or six quarters consecutively of acceleration. We are adding quite a bit of capacity. I think if you look at what is driving the growth right now, it is a combination of a few things. First, on the AI side, the unusual top to bottom stack functionality we have, whether you are building your own model with SageMaker AI, which is the easiest way to build your own model, or you want to leverage one of the leading frontier models with high security and very strong price performance, people can use Bedrock.

Whether you are building your own agents where we have capabilities like Strands and AgentCore to build and to run those securely and scalably, or you are going to use turnkey agents, which most companies do. If you just look across, Kiro for coding and Amazon Connect for call center and AWS Transform for migrations and Amazon Quick, which is growing incredibly fast, as an AI companion at work. People are adopting those very quickly. We add a lot of capacity every quarter. The amount that we add every quarter is not equal. We are adding different amounts each quarter. If I look at how much we have added this year and what we have planned over the next, I will call it, eight quarters or so, which is about as far out as we get eight to 10 quarters. We have a lot of capacity coming as well.

Then, I layer on top of that too, just the impact of chips. We're very well positioned for what's happening in AI because increasingly, what you're finding right now is most customers, every customer that uses AI at scale, but particularly enterprises now as they're starting to deploy more inference into production, they are very eager to save on price performance. Trainium, with the meaningful advantage it has in price performance versus other alternatives, is very compelling to people. Then as more and more people are using AI in a very broad way, it drives a lot of the core in capabilities like reinforcement learning and post-training and tool calling. We have the leading CPU chip in Graviton, which is about 30%-40% more price performant than the other x86 providers. So those things are really driving very significant growth.

The amount of capacity we add each quarter will vary, but at this scale to be projecting growing over 40% year-over-year in each of 2027 and 2028 is pretty significant, and the fact that we believe that this can be a trillion-dollar revenue business in five to 10 years, it's an extraordinary, unusual opportunity that we're very excited to be pursuing.

Justin, on your question about fuel and line haul inflation, I would say, I don't have an exact number for you, but it is higher in Q4 than it was in Q3. If you remember, we instituted a fuel surcharge at the beginning of the year for FBA sellers that recovers some, but not all of the costs that we're seeing on fuel for those shipments. Then the remaining part is on the retail

inbound shipments and outbound shipments. So it's in there. It's a little bit higher than Q3.

Thank you. Our next question comes from the line of Brian Nowak with Morgan Stanley. Please proceed with your question.

Thanks for taking my questions. I have two. Andy, your excitement about AWS is coming through the line, and it is pretty rare you would make comments about a trillion dollars of revenue five to 10 years from now. It is more than you usually give. Can you just maybe walk us through how you get to that trillion of dollars? Is it top-down? Is it bottom-up? What gives you confidence that you are going to be able to put up that type of revenue growth and to get to that type of a number in the next five to 10 years? The second one, just for either of you. On the robotics side, as we look into 2027, what are the key milestones you are both focused on the robotics side for the Retail business?

Yeah. On the AWS side, if you just look at the growth rates, Brian, look at the growth rates on the run rate, and then look at what we are projecting in 2027 and 2028. As I have said a few times, we will always, despite how much capacity we are providing, the big chunks of capacity that people take, the hundreds of megawatts or sometimes up to a gigawatt of capacity, those big chunks are reserved well in advance because you cannot leave a gigawatt of capacity hanging around. We have very good visibility into 2027 and 2028 and some of 2029 too, with respect to what customers want in those really big chunks of capacity.

We will always leave a fair bit of capacity available for on-demand, on EC2 or in Bedrock, and we are working closely with our customers, and they will have plenty of capacity to be able to use in AWS. We have very good visibility into the next few years on what AWS looks like. Those types of growth rates, when you do the math on the revenue and the revenue run rate we have, get you pretty quickly to escalating numbers. I would say that on top of not believing that a lot of the usage we see today is going to attenuate anytime soon, we are still really early in enterprises using inference in their production applications in a pervasive way.

It is just really early, and some of that is enterprises having enough people who know how to operate an AI and post-train and fine-tune models for the right applications. Some of it is the cost of inference. I think if we all want enterprises to be able to use inference the way we all believe they will, we have to keep working on taking the cost of inference down. That is a huge mission for AWS. It's one of the significant reasons why we're building our own custom silicon in Trainium, is that we just really believe it's incredibly important for customers to be able to use inference in a much more cost-effective way. That has come down a lot, the cost of inference, over the last couple of years, and I think it will come down meaningfully more. Then you just think about what you're seeing.

If you think about security as an example, just by itself, the models today are so advanced that the vulnerabilities that they're finding, humans just haven't found. If you've had access to these models, you're using these models to both find them and ultimately to help with patching them and deploying, and there are some people who think that the total amount of tokens used over the next year or two, 20% of it is some significant percent of it may end up being just security. That's a relatively new use case on top of what we're seeing with coding and how that continues to grow, on top of what we're seeing with the various, I'll call it AI companions, both in the consumer space and in the workspace, like with Quick. These are just the initial big use cases.

You layer on top of that, what you're going to see with enterprises, where I believe virtually every modern enterprise production application will be rewritten to be agentically capable, because that's the way you're going to have to deploy if you want to move quickly or you want to actually guard in the right way against some of the security risks. There is just so much AI coming. You can't predict with any certainty five to 10 years from now, especially at these types of growth rates, but it's not a stretch for us to imagine that this could be over a trillion-dollar business. On the robotics side, what I would say is that it's pretty remarkable what's happening in robotics right now. I'll say in general, but particularly at Amazon.

We have over 1 million robots now in our fulfillment network, and while they're having very significant impact on our cost structure and on our productivity and on safety. If you look at our safety numbers in our fulfillment network, they're at record low numbers. We've made huge progress over the last four to five years, and robotics has been a big piece of that. Yet, I would tell you we're still so early with respect to both what we have built and deployed and what we're working on. I think that you'll see, we will always have a lot of teammates in our fulfillment centers. But I think a lot of the jobs that we have that are more repetitive that we have humans doing will be done by robots. I think we're investing in all sorts of additional robotics of all different form factors.

Amazon (AMZN) Q3 2026 Earnings Call Transcript

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