Amazon.com, Inc. (AMZN) is set to release its third-quarter earnings on October 29 after market close, with investors closely monitoring key metrics such as revenue, adjusted earnings per share (EPS), and AWS growth. Analysts anticipate revenue around $202.2 billion and adjusted EPS of approximately $1.96. The focus will also be on AWS backlog, capacity demand, and AI-related spending, given Amazon's significant investments in artificial intelligence infrastructure.
A recent IPO filing by Anthropic revealed long-term cloud deals tying Amazon to at least $110 billion in committed spending. This commitment stems from an agreement in April 2026, where Amazon agreed to invest up to $25 billion in Anthropic and commit at least $110 billion in AWS spending through 2036. This includes up to 5 GW of capacity for training the Claude model, highlighting Amazon's pivotal role in AI infrastructure.
Amazon's second-quarter revenue was reported at $200.6 billion, with AWS revenue at $42.2 billion. Non-operating pretax income stood at $53.4 billion, largely driven by Anthropic investments. However, the company's trailing 12-month free cash flow was negative $7.6 billion due to higher AI infrastructure spending. Amazon remains a major investor and sponsor of Anthropic, with AWS supplying significant cloud compute for the AI developer.
Options pricing ahead of Amazon's earnings suggests an expected move of about 6.6%, 7.2%. Past post-earnings moves include a 10.9% gain in July and a 13.5% drop in February. Amazon is also planning a six-tranche debt offering in Swiss francs, marking its debut in this structured debt format. As of the latest trading, AMZN was near $249.56, up about 0.63%, as traders weighed the company's Anthropic tie-up, AI infrastructure spending, and cloud growth metrics.