# Amazon Posts $42.4 Billion Trailing 12-Month Free Cash Flow Outflow as AWS Grows 39.3% By John Kim Canonical URL: https://www.tokenpost.com/news/business/44550 Published: 2026-10-30T10:44:28.000Z Updated: 2026-10-30T10:44:28.000Z Section: Business > AWS sales reached $45.984 billion, while Amazon's fourth-quarter sales midpoint was below two analyst estimates. Amazon’s third-quarter report showed Amazon Web Services sales rising 39.3%, while a $42.4 billion trailing 12-month free cash flow outflow and holiday sales guidance below analyst estimates highlighted the scale of its investment. Amazon shares fell 7.2% in premarket trading Oct. 30. The stock had closed down 4.25% at $243.79 in regular trading Oct. 29, before the results were released at 4:01 p.m. ET. Amazon recorded third-quarter net sales of $201.944 billion, up 12% from a year earlier, and diluted earnings of $1.89 a share. Both were below analyst estimates of $202.2 billion in sales and $1.97 per share. Net income slipped 2% to $20.685 billion. Amazon said the net income comparison was primarily affected by $9.5 billion in pre-tax gains from Anthropic investments in the year-earlier quarter. Amazon Web Services (AWS), the company's cloud unit, generated $45.984 billion in sales, up 39.3% and its fastest growth in nearly five years. AWS operating income climbed 55% to $17.773 billion. Amazon President and CEO Andy Jassy said he expects AWS revenue growth to exceed 40% in both 2027 and 2028. Free cash flow was an outflow of $42.357 billion for the 12 months ended Sept. 30, compared with an inflow of $14.788 billion in the prior-year period. Amazon linked the shift primarily to a $94.8 billion year-over-year increase in net property and equipment purchases, largely tied to AI investment. The company continues to expect about $220 billion in cash capital expenditures in 2026. The results revisit the balance between cloud growth and AI investment raised in [earlier coverage of AI infrastructure spending and cash flow](). Outside AWS, North America sales increased 6%. Advertising-services revenue rose 11% as reported and 12% excluding foreign-exchange changes, down from 26% adjusted growth in the second quarter. Amazon pointed to timing differences, primarily Prime Day: the event took place in the second quarter this year in most large countries, compared with the third quarter in 2025. Amazon forecast fourth-quarter sales of $240 billion to $247 billion, putting the midpoint at $243.5 billion. Analyst estimates were $244.16 billion and $244.51 billion. The company projected fourth-quarter operating income of $28.5 billion to $33.5 billion. ## Links in this article - [earlier coverage of AI infrastructure spending and cash flow](https://www.tokenpost.com/news/investing/25892)