Overview
- Amazon reported fourth‑quarter net sales of $213.4 billion, a beat on revenue, with earnings of $1.95 per share coming in a touch below expectations.
- AWS delivered $35.58 billion in revenue, up roughly 24% year over year, with $12.47 billion in operating income and about a 35% margin, continuing to drive a majority of company operating profit.
- Management guided to roughly $200 billion in 2026 capital expenditures, far above Wall Street estimates near the mid‑$140 billions, with spending centered on AI chips, data centers and logistics capacity including Project Rainier.
- Shares fell more than 7% in after‑hours trading following the results and the larger‑than‑expected spending outlook.
- Amazon continues to cut costs with about 16,000 new corporate layoffs following prior reductions, while deepening AI ties that include a $38 billion multi‑year cloud commitment from OpenAI and reported talks about a potential Amazon investment.