In the fourth quarter ended December 31, net sales at Amazon rose 13.6%, to $213.4 billion, and net income rose 5.9%, to $21.2 billion. For the year, net sales rose 12.4%, to $716.9 billion, and net income rose 31.1%, to $77.7 billion. The fourth quarter sales gain marked the first time Amazon quarterly sales were above $200 billion.
In the fourth quarter, North American sales rose 10%, to $127.1 billion; international sales rose 17%, to $50.7 billion (or 11%, taking into account currency fluctuations); and sales at AWS, Amazon's cloud division, rose 24%, to $35.6 billion. For the year North American sales rose 10%, to $426.3 billion; international sales rose 13%, to $161.9 billion (or 10%, taking into account currency fluctuations); and AWS sales rose 20%, to $128.7 billion.
The company estimated that in the first quarter of 2026, net sales will be between $173.5 billion and $178.5 billion, up 11%-15%, while operating income should be between $16.5 billion and $21.5 billion, compared to $18.4 billion in the first quarter of 2025.
Amazon president and CEO Andy Jassy said, "AWS growing 24% (our fastest growth in 13 quarters), advertising growing 22%, stores growing briskly across North America and international, our chips business growing triple digit percentages year-over-year--this growth is happening because we're continuing to innovate at a rapid rate, and identify and knock down customer problems. 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."
Because AWS sales have risen at a slower rate than some competitors and the cost of "building new AI data centers is outpacing revenue from selling these services to customers, potentially weighing on profitability," as the Wall Street Journal put it, Amazon shares fell about 10% in after-market trading yesterday.
The boost in AI-related capital spending to $200 billion is more than analysts predicted and comes at the same time that the company has made cutbacks in other areas, with layoffs late last year and this year of about 30,000, or 10% of its executive staff; the shutting of Fresh and Go grocery stores; and the shutting down of its Amazon One palm payment system.