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Amazon sheds 7% after its Q3 2026 results and Q4 2026 guidance missed estimates
- Amazon’s Q3 2026 revenue rose 12% y/y to $201.94 billion, below analysts’ estimate of $202.31 billion, while EPS was $1.89 versus $1.96 expected.
- Amazon guided Q4 2026 revenue of $240-$247 billion, with the midpoint missing $244.5 billion estimate.
- Amazon Web Services (AWS) revenue was $45.98 billion versus $45.29 billion expected, while advertising revenue came in at $19.64 billion (+12% y/y) vs. $20.82 billion estimate.
- The shift of Prime Day to Q2 2026 from Q3 2025, the absence of NBA games, and tougher year-over-year comparisons from search marketing improvements weighed on advertising growth.
- CEO Andy Jassy said on the earnings call that he expects to “spend meaningfully more in 2027.”