Amazon.com Inc (NASDAQ:AMZN) shares fell as much as 10% after the company released mixed fourth quarter earnings and outlined plans to invest approximately $200 billion in capital expenditures in 2026, focusing on areas including artificial intelligence, chips, robotics, and low-earth orbit satellites.
This is up from approximately $125 billion in 2025.
Also weighing on the stock was a slight profit miss for Q4, with earnings per share coming in at $1.95, just below analysts’ expectations of $1.97.
Amazon reported sales of $213.4 billion, up 14% year-over-year and slightly above the Street consensus of $211.33 billion.
Segment performance showed North America sales of $127.1 billion, up 10% from the prior year, while international sales increased 17% to $50.7 billion, or 11%.
AWS revenue rose 24% to $35.6 billion, exceeding the $34.93 billion estimate, and advertising revenue reached $21.5 billion, slightly above the $21.16 billion consensus.
For the full year, Amazon reported net sales of $716.9 billion, up 12% from $638 billion in 2024. Net income for 2025 was $77.7 billion, or $7.17 per diluted share, compared with $59.2 billion, or $5.53 per share, in 2024.
“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,” Amazon CEO Andy Jassy said in a statement.
“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.”