Amazon’s fourth-quarter revenue grew by 12% ignoring exchange rate impacts to $213.4bn. The cloud division AWS was up 24%, three percentage points higher than forecasts. Elsewhere, there was double-digit growth from both the North American and International segments.
Operating income was up 18% to $25.0bn, missing consensus forecasts of $25.3bn due to $2.4bn of one-off expenses.
Full-year free cash flow fell from $50.7bn to $11.2bn, reflecting higher levels of capital expenditure. Net debt, including leases, was $30.0bn.
First-quarter revenue guidance of $173.5bn-$178.5bn was in line with forecasts, but even the top end of the $16.5bn-$21.5bn operating profit range was below consensus ($22.5bn expected). Capital expenditure guidance for 2026 is around $200bn.
The shares were down 8.0% in pre-market trading.
Our view
HL view to follow
Amazon key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.