TLDR
- Amazon slips 4.42% as big 2026 spending plans overshadow strong quarterly results.
- AWS delivers fastest growth in years, yet rising costs push AMZN to session lows.
- Retail, cloud, and ads grow solidly, but heavy capex sparks renewed investor worry.
- AI chips, Bedrock, and Nova models surge, fueling AWS momentum into 2026.
- Amazon boosts logistics and delivery speed, but market reacts to higher expenses.
Amazon (AMZN) shares fell 4.42% to $222.69 after a late-day selloff, and the drop came despite strong quarterly gains. The company posted solid revenue growth and expanded operating income, yet the market reacted to rising spending signals. AMZN still reported broad momentum across its cloud, retail, and advertising operations, but the stock closed near session lows.
AMZN Posts Double-Digit Sales Gains as Core Segments Strengthen
AMZN reported fourth-quarter net sales of $213.4 billion, and the figure rose 14% from last year. The company saw broad gains across North America, International, and AWS, and each segment showed steady demand. AMZN absorbed charges tied to tax disputes, severance costs, and store impairments.
The North America business grew 10% to $127.1 billion, and it remained the company’s largest revenue driver. The International unit increased sales by 17% to $50.7 billion, and the segment showed improving margins. AWS surged 24% to $35.6 billion, and it delivered the strongest quarterly performance in more than three years.
Operating income reached $25 billion, and it rose from $21.2 billion last year. AMZN stated that income would have been higher without special charges, and the adjusted total reached $27.4 billion. Net income increased to $21.2 billion, and diluted EPS improved compared with the prior year.
AWS Momentum Accelerates as AMZN Expands AI and Chip Initiatives
AMZN highlighted rapid growth across its cloud division, and AWS posted a 24% annual increase. The company added major enterprise customers across technology, media, travel, and finance, and cloud demand strengthened through the quarter. Moreover, AMZN saw rising adoption of Bedrock models and new agentic systems across enterprise clients.
The company expanded its custom chip programs, and Trainium and Graviton reached a combined run rate above $10 billion. AMZN stated that Trainium2 capacity remained fully subscribed, and the chip family advanced workloads across major AI frameworks. Trainium3 and Trainium4 development continued, and supply commitments already stretched into 2027.
AMZN also introduced new Nova models and advanced tools for organizations seeking to build or customize AI systems. The company launched new agentic features for security, DevOps, and customer support, and these systems supported complex workflows. AWS also accelerated modernization programs for enterprise codebases, and activity expanded across thousands of applications.
AMZN Boosts 2026 Capital Plan as Retail and Logistics Networks Scale
AMZN outlined a planned $200 billion capital program for 2026, with spending supporting AI, chips, robotics, and satellites. The company reported faster global delivery speeds and increased rural coverage, and its logistics network hit new efficiency records. Same-day delivery expanded sharply, and millions of customers used ultra-fast services.
The company advanced the Amazon Now program into new regions, and grocery fulfillment reached 2,300 U.S. locations. AMZN also extended pharmacy delivery coverage and improved rural service levels, and usage climbed year over year. Digital tools such as Rufus and Lens gained traction, helping lift engagement and retail activity.
AMZN issued first-quarter 2026 guidance with projected sales growth of 11% to 15%. The company expects operating income of $16.5 billion to $21.5 billion, and it noted higher costs from Amazon Leo. Market conditions remain unpredictable, yet AMZN continues positioning for long-term expansion through sustained investment.
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