Amazon Faces Q3 Test at $202.31 Billion Revenue as 2027 Capex Seen Above $280 Billion
Updated
Updated · CNBC · Oct 29
Amazon Faces Q3 Test at $202.31 Billion Revenue as 2027 Capex Seen Above $280 Billion
3 articles · Updated · CNBC · Oct 29
Summary
$202.31 billion in revenue and $1.96 in adjusted EPS are the key Q3 targets for Amazon, with investors focused less on the headline beat than on what management says about AI spending after the bell.
AWS is expected to deliver $45.48 billion in sales, up 38%, which would mark a fifth straight quarter of accelerating growth after Andy Jassy said much of next year's cloud capacity is already sold out.
$220 billion in 2026 capital spending and expectations for more than $280 billion in 2027 have sharpened scrutiny on cash generation as Amazon races to add data centers for AI demand.
Free cash flow has already swung to negative $7.6 billion over the trailing 12 months from positive $18.2 billion a year earlier, and FactSet estimates a $9.9 billion outflow this quarter.
Amazon is pairing that AI buildout with tighter control of shopping agents and leaner staffing, blocking third-party bots like Meta's Muse while saying 400 million shoppers have used its own Alexa for Shopping tools.