Amazon has reported third-quarter net sales hit $201.9bn (£153bn), with strong growth in its cloud computing division helping drive a 61 per cent rise in operating income.

For the three months ending 30 September 2026, the online retail giant’s operating income climbed to $28.1bn, up from $17.4bn a year earlier, while operating margin reached a record 13.9 per cent.

However, net income slipped 2 per cent to $20.7bn, compared with $21.2bn in the third quarter of 2025. Amazon attributed the decline to one-off gains from its investments in Anthropic in the previous year.

Amazon’s North American business recorded a 6 per cent increase in sales to $112.9bn, while international sales rose 5 per cent to $43.1bn. International growth was 8 per cent when adjusted for foreign exchange movements.

The company said the timing of Prime Day had affected the year-on-year comparison, with the sales event taking place in the second quarter this year in most major markets, rather than the third quarter as it did in 2025. Excluding this shift, third-quarter sales growth would have been approximately four percentage points higher.

Amazon Web Services (AWS) remained a growth driver, with sales increasing 39 per cent to $46bn, its fastest growth in nearly five years.

In July, AWS announced a $1bn (£754m) investment in a new division that will embed AI engineers directly with customers to help them deploy artificial intelligence systems faster.

Amazon also reported continued momentum in its grocery operations, with fresh groceries and everyday essentials growing around three times faster than the rest of its store. The categories accounted for approximately half of all units sold during the quarter.

Its ultra-fast delivery service, Amazon Now, also continued to expand and is now available in more than 450 towns and cities globally, with orders increasing tenfold year on year.

Amazon expects fourth-quarter net sales of between $240bn and $247bn, representing growth of 12 per cent to 16 per cent year-on-year.

The company also reiterated its expectation that capital expenditure will reach approximately $220bn for the full year, reflecting continued investment in infrastructure and technology.

Click here to sign up to Retail Gazette‘s free daily email newsletter