Amazon 10-Q: Q3 Net Income $20.7B, TTM Free Cash Flow Turns Negative at $(42.4)B
AMZN sits 16% above its 52-week low of $196 on elevated volume (2.3× avg).
Summary
Amazon's Q3 10-Q shows operating income of $28.1B on 39% AWS growth, but trailing-twelve-month free cash flow is negative $42.4B as capex hit $210.7B net and long-term debt face value rose to $180.9B.
Key Events · Earnings and Guidance · AMZN
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Q3 Operating Income Jumps to $28.1B
Operating income rose to $28,076M from $17,422M a year earlier on net sales of $201,944M, with AWS sales up 39% to $45,984M and AWS operating income of $17,773M.
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Free Cash Flow Turns Negative
Trailing-twelve-month free cash flow was $(42,357)M versus $14,788M a year earlier, as purchases of property and equipment net of proceeds reached $210,657M against $168,300M of operating cash flow.
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Debt Load Nearly Triples
Total face value of long-term debt rose to $180,887M from $68,836M at December 31, 2025, including a $17.5B term loan drawn in September 2026 and new March, July and September 2026 note issuances.
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Net Income Flattered by Anthropic Marks
Nine-month net income of $113,587M includes $62.9B of upward adjustments on Anthropic nonvoting preferred stock; Q3 net income was $20,685M, or $1.89 diluted EPS.
Analysis · AMZN · Trade & Services
The headline numbers were already out via the October 29 earnings release, but the 10-Q is where the balance sheet and cash flow detail land — and that detail is the story. Operating income jumped to $28.1B from $17.4B on 39% AWS growth, yet trailing-twelve-month free cash flow flipped to negative $42.4B as capital spending ran at $210.7B net of proceeds. To fund that buildout, long-term debt face value nearly tripled to $180.9B from $68.8B at year-end, including a $17.5B term loan drawn in September and a stack of new note issuances. Net income also leans heavily on non-cash marks: $62.9B of nine-month upward adjustments on the Anthropic stake, which is why the $113.6B nine-month profit overstates operating cash generation. Q4 guidance of $240-247B in sales and $28.5-33.5B operating income, plus capex still tracking ~$220B for 2026, is the number that matters for the cash-flow trajectory.
How filings like this one have moved
In the 30 days to Oct 30, 2026, 38.3% of the 896 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.41%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, AMZN was trading at $226.40 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.6T. The 52-week trading range was $196.00 to $287.20. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.