LONDON (ShareCast) - (Sharecast News) - Shares in online retail giant Amazon rallied in extended trading after it posted third-quarter earnings that came in ahead of expectations on the back of a sharp acceleration in cloud revenue.


Amazon said earnings per share came in at $1.95, beating forecasts of $1.57, while revenue rose to $180.17bn, ahead of the $177.8bn expected. Amazon Web Services revenue grew 20.2% to $33bn, topping analyst estimates and easing concerns over competitive pressure from Google and Microsoft.

Operating income was flat year-on-year at $17.4bn, reflecting a $2.5bn FTC settlement and $1.8bn in severance costs linked to planned role cuts, while advertising revenues also beat expectations, rising to $17.7bn.

On the other hand, Amazon hiked its full-year capital expenditure forecast to $125bn, up from $118bn, and said spending would likely increase again in 2026.

For the current quarter, Amazon guided for revenue between $206bn and $213bn, with the midpoint of $209.5bn ahead of consensus, while operating income was expected to land between $21bn and $26bn, though the company flagged tariffs and trade policy as potential risks to its outlook.

As of 0845 GMT, Amazon shares were up 12.20% in pre-market action at $250.06 each.











Reporting by Iain Gilbert at Sharecast.com

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