AWS Powers Amazon’s Record Margins While AI Spending Drains Cash Flow
Amazon’s third-quarter 2026 results painted a study in contrasts: robust top-line growth and record operating margins driven largely by AWS, paired with mounting cash-flow pressure as heavy AI investments and capital expenditures weigh on liquidity. Revenue rose to $201.9 billion, operating income jumped sharply, yet free cash flow turned negative for the trailing year—signs that Amazon is balancing a profitable core with aggressive, expensive bets on AI infrastructure. A quarter…