Amazon posts $42.4B free cash flow deficit on AI infrastructure spending
Amazon's third-quarter revenue and earnings per share both missed expectations, while capital expenditure more than doubled year on year.
Amazon reported a trailing-twelve-month free cash flow deficit of $42.4 billion, which the company attributed to heavy capital spending on AI infrastructure, according to tech42.co.kr.
For the third quarter, Amazon posted revenue of $201.94 billion and earnings per share of $1.89, both below market expectations. Net profit for the quarter fell to $20.69 billion from $21.19 billion a year earlier. Capital expenditure reached $77.3 billion in the quarter, more than double the $35.1 billion recorded in the same period a year earlier.
Amazon Web Services, the company's cloud business, reported third-quarter revenue of $45.98 billion, up 39% year on year. Advertising revenue came in at $19.64 billion, short of expectations.
CEO Andy Jassy indicated that Amazon will significantly increase investment in 2027 to meet demand for AI infrastructure.
Quick answers
What was Amazon's free cash flow for the trailing twelve months?
Amazon reported a trailing-twelve-month free cash flow deficit of $42.4 billion, attributed to AI infrastructure capital spending.
How much did Amazon spend on capital expenditure in the third quarter?
Amazon's third-quarter capital expenditure was $77.3 billion, more than double the $35.1 billion in the same quarter a year earlier.
How did Amazon Web Services perform in the third quarter?
Amazon Web Services reported revenue of $45.98 billion, up 39% year on year.