Amazon posts 12 percent net sales growth as fashion selection expands

US e-commerce giant Amazon.com reported a 12 percent increase in net sales for the third quarter ended September 30, 2026, reaching 201.94 billion dollars compared with 180.17 billion dollars in the prior-year period. Excluding an unfavorable foreign exchange impact of 0.90 billion dollars, net sales expanded 13 percent year-over-year. The retail and technology corporation saw operating income rise 61 percent YoY to 28.08 billion dollars, up from 17.42 billion dollars in the third quarter of 2025.

Net income for the period stood at 20.69 billion dollars, or 1.89 dollars per diluted share, compared with 21.19 billion dollars, or 1.95 dollars per diluted share, in the third quarter of 2025. The contraction in net income was primarily driven by pre-tax valuation gains of 9.50 billion dollars recorded in the third quarter of 2025 from investments in US artificial intelligence research company Anthropic. Consolidated operating margin widened to 13.90 percent, up from 9.70 percent recorded during the same period in 2025.

Marketplace momentum and brand assortment expansion

Within its retail marketplace, Amazon strengthened its consumer catalogue by onboarding premium fashion, fragrance, and lifestyle labels during the autumn/winter 2026 season. The platform expanded its product selection from apparel brand Banana Republic, French luxury house Jean Paul Gaultier, and Carolina Herrera by more than 20 percent YoY. Third-party seller services generated 46.49 billion dollars during the three months, representing an increase of 9 percent YoY from 42.49 billion dollars.

Online stores recorded net sales of 68.47 billion dollars, rising 2 percent YoY compared with 67.41 billion dollars in the third quarter of 2025. Physical store revenue also grew 2 percent YoY to 5.71 billion dollars, up from 5.58 billion dollars a year earlier. Worldwide paid units increased 12 percent YoY, with independent sellers accounting for 61 percent of total units sold across the retail ecosystem.

Operating profit rises across retail divisions

Amazon president and chief executive officer, Andy Jassy, highlighted ongoing operational gains in retail fulfilment and delivery speeds. “Our broader selection and speedier delivery are helping us capture more retail market segment share with improving margins, and our newer businesses, ranging from Grocery to Pharmacy to Amazon Leo to Zoox are progressing encouragingly,” Jassy said in a statement. The company delivered more than 1.50 billion items to Prime members either same-day or overnight during the third quarter.

North America segment sales climbed 6 percent YoY to 112.85 billion dollars, while operating income for the division rose 82 percent YoY to 8.72 billion dollars. International segment sales advanced 5 percent YoY to 43.11 billion dollars, delivering an operating profit of 1.58 billion dollars compared with 1.20 billion dollars in the prior-year period. Cloud computing unit Amazon Web Services (AWS) posted net sales of 45.98 billion dollars, up 39 percent YoY, with operating income climbing 55 percent YoY to 17.77 billion dollars.

Advertising services generated 19.64 billion dollars in net sales, marking an 11 percent increase YoY as brand partners leveraged expanded promotional tools. Growth in the advertising and retail segments was influenced by the calendar shift of Prime Day, which took place in the second quarter of 2026 rather than the third quarter. Amazon stated that excluding this calendar shift, third-quarter net sales growth would have been approximately 400 basis points higher.

Fourth quarter guidance points to steady holiday demand

Looking ahead to the final stretch of the AW26 trading calendar, Amazon issued sales guidance projecting fourth quarter net sales between 240 billion dollars and 247 billion dollars. This represents projected YoY growth of between 12 percent and 16 percent, factoring in an anticipated unfavorable currency impact of approximately 60 basis points.

Operating income for the fourth quarter is anticipated to range between 28.50 billion dollars and 33.50 billion dollars, compared with 25 billion dollars achieved in the fourth quarter of 2025. Advertising revenue is expected to accelerate into the high teens during the holiday quarter as fashion and consumer brands increase promotional spending. The group continues to expect full-year 2026 capital expenditures of approximately 220 billion dollars, reflecting sustained investments in artificial intelligence infrastructure and logistics technology.