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Amazon misses Q4 earnings estimates despite strong sales, cloud growth

Amazon said it plans to increase capital spending to $200 billion this year from $125 billion as it sees opportunities in artificial intelligence, robots, semiconductors and satellites

Revenue rose 14 per cent to $213.4 billion in the fourth quarter, compared with $187.8 billion in the year-ago period (Photo: Reuters)

AP New York

1 min read Last Updated : Feb 06 2026 | 6:57 AM IST

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Amazon reported fourth-quarter earnings slightly below Wall Street estimates even as sales surged and it reported the fastest growth in its prominent cloud computing business in 13 quarters.

The Seattle-based online behemoth on Thursday reported net income of $21.2 billion, or $1.95 per share, for the three-month period ended December 31. That compares with $20 billion, or $1.86 per share, in the year-ago quarter.

Revenue rose 14 per cent to $213.4 billion in the fourth quarter, compared with $187.8 billion in the year-ago period.

Analysts were expecting $1.97 per share on sales of $211.4 billion, according to analysts polled by FactSet.

Revenue from its cloud service arm called Amazon Web Services increased 24 per cent to $35.6 billion. Analysts were expecting $34.9 billion.

Amazon said it plans to increase capital spending to $200 billion this year from $125 billion as it sees opportunities in artificial intelligence, robots, semiconductors and satellites, Amazon CEO Andy Jassy said in a press release. Wall Street analysts were expecting spending to rise to around $147 billion, according to FactSet.

Shares were down close to 9 per cent in after-hours trading.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)