Amazon saw slowed growth in its advertising revenue in the year’s third quarter, claiming its decision to host Prime Day for most larger countries in the year’s second quarter and a shift in foreign exchange rates contributed to a softer earnings report than Wall Street analysts expected. Past quarters for the advertising sector saw growth hover around 22% year-over-year before increasing to 26% in 2026’s second quarter. This quarter saw the sector’s growth plummet to 12%, a drop the company attributed to changes in foreign exchange rates and the shifting of Prime Day.
Amazon reported $201.9 billion in net sales and a diluted earnings per share of $1.89. Wall Street analysts expected the company to report $202.31 billion in revenue with an EPS of $1.96, according to an analyst consensus compiled by LSEG. Its stock was down 4% post-market close following the earnings report.
Conversely, the company saw revenue in Amazon Web Services increase by 39% to $46 billion, the fastest growth for the sector in nearly five years and nearly 20 percentage points than its 20% growth in 2025’s third quarter. There has never been a trillion dollar revenue business, and we may have two of them in the next 5-10 years.”
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