AWS Growth and Capital Spending: What to Watch for in Amazon's Q3 Earnings

Amazon's upcoming earnings reports are expected to be crucial in determining the company's stock performance. The tech giant is set to release its third-quarter results on October 29, 2026, which will provide insight into Amazon Web Services (AWS) growth. AWS revenue grew 36.7% in the second quarter of 2026 from a year earlier, marking the fifth straight quarter of faster growth.

However, investors are also keeping a close eye on Amazon's capital spending plan for 2026, which has been raised to about $220 billion due to the higher cost of memory chips. This increased spending is expected to put pressure on free cash flow, leaving less money available after capital expenditures.

The fourth quarter is also a critical period for Amazon's retail business, with the company expecting an outsized share of its sales during this time. However, transportation and labor costs are major concerns, particularly given the recent increase in fuel inflation and limited driver capacity.