Amazon Earnings: Cloud Revenue Surges as AI Spending Drives $42B Negative Cash Flow

Amazon posted mixed third-quarter results as massive artificial intelligence expenditures weighed on cash flow, despite AWS revenue climbing 39%.

Amazon presented a mixed financial picture in its third-quarter earnings report, as heavy spending on artificial intelligence infrastructure drove a negative free cash flow of $42.4 billion, CNBC and Yahoo Finance reported. At the same time, the tech giant held its capital expenditure plans for 2026 unchanged and provided a cautious outlook for the upcoming holiday shopping period.

In contrast, the Amazon Web Services cloud computing division posted sharp revenue growth of 39%, surpassing Wall Street analyst forecasts. According to CNBC, this acceleration was supported by major deals signed during the quarter with Meta and OpenAI.