Amazon Reports Q4 Results Amid Share Decline
Amazon (NASDAQ: AMZN) shares fell approximately 6% on Friday, following its fourth-quarter update on January 26, 2026. The earnings per share (EPS) of $1.95 slightly missed the expected $1.97, impacted by $2.4 billion in special charges. However, Amazon exceeded revenue projections, reporting $213.4 billion against an estimate of $211.3 billion.
The decline was also influenced by a forecasted capital expenditure of $200 billion for 2026, significantly higher than the anticipated $147 billion. Despite this, Amazon’s core business remains robust, with a 14% year-over-year revenue growth and a 24% surge in AWS revenue, reaching an annualized run rate of $142 billion. AWS’s backlog now totals $244 billion, reflecting a 40% year-over-year increase.
Amazon’s advertising revenue for Q4 climbed 22% year-over-year to $21.3 billion, and the company’s competitive pricing remains strong, with a recent study showing it as the lowest-cost retailer in the U.S. for nine consecutive years.
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