AMZN · Amazon · Q3 FY2026
Amazon Widens Margins as Revenue Growth Slows
Revenue growth moderated to 12.1% from 19.6%, and operating margin widened 423 basis points to 13.9%.
- Published
- Nov 2, 2026
- Event
- Oct 29, 2026
- Quarter ended
- Sep 30, 2026
- Data as of
- Oct 30, 2026
Published becauseBlockhaven's first note on Q3 FY2026, whose results were filed Oct 29, 2026: the latest reported quarter sent mixed signals.
The Blockhaven read
Amazon earned a wider margin on slower growth: revenue growth moderated to 12.1% from 19.6%, while operating margin widened 423 basis points to 13.9%. Profit is improving without help from faster sales; the company's own explanation, if any, is in its filing's discussion of results, which Blockhaven does not summarise here. One quarter cannot show whether the wider margin can last if growth slows further.
Latest reported quarter
RevenueGAAP
- Latest
- $201.9 billion
- Year ago
- $180.2 billion
- Change
- +12.1% (Up year over year)
Operating incomeGAAP
- Latest
- $28.1 billion
- Year ago
- $17.4 billion
- Change
- +61.1% (Up year over year)
Net incomeGAAP
- Latest
- $20.7 billion
- Year ago
- $21.2 billion
- Change
- −2.4% (Down year over year)
Diluted EPSGAAP
- Latest
- $1.89
- Year ago
- $1.95
- Change
- −3.1% (Down year over year)
Operating margin (GAAP)Derived
- Latest
- 13.9%
- Year ago
- 9.7%
- Change
- +423 bp (Up year over year)
| Measure | Basis | Latest quarter | Year ago | Change |
|---|---|---|---|---|
| Revenue | GAAP | $201.9 billion | $180.2 billion | +12.1% (Up year over year) |
| Operating income | GAAP | $28.1 billion | $17.4 billion | +61.1% (Up year over year) |
| Net income | GAAP | $20.7 billion | $21.2 billion | −2.4% (Down year over year) |
| Diluted EPS | GAAP | $1.89 | $1.95 | −3.1% (Down year over year) |
| Operating margin (GAAP) | Derived | 13.9% | 9.7% | +423 bp (Up year over year) |
Revenue growth +12.1% against +19.6% in the prior quarter (year over year, GAAP).
Trend: Mixed. Revenue growth slowed, operating margin widened and GAAP operating income improved.
GAAP unless labelled. Non-GAAP and company-defined measures are labelled.
What changed
- Revenue growth slowed to 12.1% from 19.6%.
- Operating margin widened 423 basis points year over year, to 13.9% from 9.7% (GAAP).
- GAAP operating income rose 61.1% year over year while net income fell 2.4% and diluted EPS fell 3.1%.
Why it matters
Operating income grew 61.1% on 12.1% revenue growth: the margin change accounts for the difference between the two rates.
Net income fell while operating income rose: the difference sits below the operating line.
What to watch
- Operating margin at the next report against 13.9% this quarter: a further move in the same direction would confirm this reading, and a reversal would weaken it.
- Year-over-year revenue growth against 12.1% now and 19.6% before: a stabilisation would ease the tension with the outlook, and a further slowdown would sharpen it.
Data and sources
Figures come from the company's SEC filings. GAAP figures are labelled as such. Blockhaven used no outside forecasts, so no figure here is measured against market expectations.
Descriptive company facts. Not investment advice, a rating or a recommendation.