Amazon (AMZN) fell in after-hours trading on Thursday after releasing its fourth-quarter earnings report that covered the crucial holiday period.
The Seattle-based e-commerce giant reported total revenue in North America in FQ4 was up 10% to $127.1 billion, while international revenue was 17% higher at $50.7B. Total revenue was up 14% year-over-year to $213.4B, vs. $211.5B consensus.
The cloud business was strong again as AWS revenue came in at $35.6B to beat the consensus estimate of $34.9B. Online stores revenue came in at $83.0B, vs. the $82.3B consensus estimate. Third-party seller services revenue rose 10% to $52.8B during the quarter.
Operating income was reported at $25.0B in comparison to the consensus mark of $24.8B and the company’s guidance range of $21.0B to $26.0B. North America segment operating income was $11.5B, international segment operating income was $1.0B, and AWS segment operating income was $12.5B.
Free cash flow decreased to $11.2B for the trailing twelve months, driven primarily by a year-over-year increase of $50.7B in purchases of property and equipment, net of proceeds from sales and incentives. The increase was noted to primarily reflect investments in artificial intelligence. Last year, free cash flow was up $38.2B for the trailing twelve months.
CEO Andy Jassy: “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026 and anticipate strong long-term return on invested capital.”
Looking ahead, Amazon (AMZN) expects revenue of $173.5B to $178.5B (midpoint $176.5B) for the first quarter, vs. $175.5B consensus. Amazon (AMZN) also guided for operating income of $16.5B to $21.5B (midpoint $19.0 billion) vs. $22.2B consensus. Notably, Amazon (AMZN) forecasts $200B in capital expenditures for the year.
Amazon (AMZN) will hold a conference call at 5:00 p.m.
Shares of Amazon (AMZN) were down 8.8% in after-hours trading. The e-commerce stock was down 4.4% during the regular session.