--- title: "Andy Jassy Just Delivered Great News for Amazon Stock Investors" type: "News" locale: "en" url: "https://longbridge.com/en/news/305022121.md" description: "Amazon CEO Andy Jassy reported strong Q3 results, highlighting AWS revenue growth of 39.3% to $46 billion and a record operating margin of 13.9%. AWS backlog reached $578 billion, signaling robust demand for AI infrastructure. Despite $220 billion in capital expenditures impacting free cash flow, accelerating cloud services and improving AI profitability support Amazon's investment strategy." datetime: "2026-11-10T13:41:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/305022121.md) - [en](https://longbridge.com/en/news/305022121.md) - [zh-HK](https://longbridge.com/zh-HK/news/305022121.md) generator: "portal-rs" --- # Andy Jassy Just Delivered Great News for Amazon Stock Investors **Amazon** (AMZN +2.94%) has been spending an extraordinary amount of money building artificial intelligence infrastructure, and investors have been waiting to see whether those investments will pay off. CEO Andy Jassy just gave them a pretty compelling answer. During Amazon's third-quarter earnings call, Jassy revealed that Amazon Web Services (AWS) is growing faster than it has in nearly five years, with customers consuming new computing capacity almost as quickly as Amazon can install it. "\[O\] ur plan is working," he said. That's encouraging news for a company planning to spend approximately $220 billion on capital expenditures this year. There's also plenty more to like about what Jassy had to say. ![Andy Jassy speaking on stage.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84OTM2NDkvYW5keS1qYXNzeV9hbWF6b25fYW16bl9jZW9faW1hZ2Vzb3VyY2VfYW1hem9uY29tLWluYy5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Amazon CEO Andy Jassy. Image source: Amazon. ## AWS is growing faster than ever Amazon's Q3 revenue was $201.9 billion, up 12% from a year earlier. Operating income increased 61% to $28.1 billion, giving the company a record operating margin of 13.9%. AWS was the real standout. The cloud computing business generated $46 billion in revenue, an increase of 39.3% year over year. That's the sixth consecutive quarter of accelerating growth, putting AWS on an annualized revenue run rate of approximately $184 billion. The business is becoming increasingly profitable. AWS operating income reached $17.8 billion, up 55% from $11.4 billion a year earlier. Jassy told analysts that AWS has been installing an AI accelerator approximately every 14 seconds. "\[C\] ustomers are gobbling it up," he said. "Our core compute and storage revenue grew at their fastest rates in several years." That's an important distinction. Amazon isn't simply building enormous data centers and hoping customers eventually show up. It's adding capacity to meet existing demand, and the company has the contracts to demonstrate it. ## A $578 billion backlog tells an important story Jassy said AWS ended the quarter with a whopping $578 billion in backlog, representing triple-digit growth from a year earlier. Backlog represents future revenue associated with customer commitments, although the timing of revenue recognition depends on when Amazon delivers the contracted services. For investors worried that AI infrastructure spending has gotten ahead of demand, that's a meaningful number. Jassy also said AWS's traditional computing and storage businesses are growing at their fastest rates in several years. So while AI is attracting much of the attention, Amazon's existing cloud services are contributing to the acceleration. There's another encouraging development. According to Jassy, profitability in AWS's AI business is improving rapidly, even with higher memory costs and depreciation expenses associated with its infrastructure investments. ## AMZN - Amazon $266.93+$7.63 (+2.94%) NASDAQ · As of 4:00 PM ET 11/09/26 Premium Feature Moneyball Superscore88/100 ### Key data points Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.$2.89T Day's range$266.91 - $275.34 52wk range$196.00 - $287.20 Volume299.3K Avg volume38.9M Gross margin51.37% That matters because Amazon needs more than growing revenue to justify its enormous spending. It needs those investments to generate attractive returns. ## Amazon's spending is worth considering Amazon expects approximately $220 billion in capital expenditures during 2026, much of it directed toward AI infrastructure. That's an extraordinary commitment, even for a company of Amazon's size. The effect is already showing up in its financial statements. Amazon reported negative free cash flow of $42.4 billion over the trailing 12 months, compared with positive free cash flow of $14.8 billion a year earlier. The company is generating substantial operating cash flow, but its investments in property and equipment are consuming even more money. Investors also need to remember that backlog isn't guaranteed profit. Amazon must deliver the computing services, absorb the associated operating expenses, and earn enough to justify its investment. Jassy believes the demand will support continued expansion. In fact, Amazon projects AWS revenue growth exceeding 40% in both 2027 and 2028. But that's management's expectation, not a guaranteed outcome. ## Why Amazon stock still looks compelling Amazon's Q3 results offer something investors have been demanding from the companies spending heavily on AI: evidence that customers are actually paying for the additional computing power. AWS revenue is accelerating, operating income is climbing, and its backlog suggests there's substantial demand still waiting to be served. The company's capital spending remains a legitimate concern, particularly with free cash flow under pressure. A backlog of future business doesn't eliminate the possibility that customers will eventually slow their spending. But Jassy's comments make a persuasive case that Amazon's AI investments are addressing real demand rather than speculative expectations. For investors willing to accept the near-term spending pressure, that's a compelling reason to remain interested in Amazon stock. ### Related Stocks - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [AMAA.US](https://longbridge.com/en/quote/AMAA.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [AMZG.US](https://longbridge.com/en/quote/AMZG.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) ## Related News & Research - [Amazon Housing Fund marks five years, $2.7 billion deployed to create or preserve more than 27,000 affordable homes](https://longbridge.com/en/news/305331312.md) - [Amazon Generated $202 Billion in Quarterly Sales. Most of Its Operating Profit Came From Just 1 Business.](https://longbridge.com/en/news/304881744.md) - [Die Vorfreude steigt: Amazons Black Friday Woche kehrt vom 19. November bis zum 30. November zurück](https://longbridge.com/en/news/304978704.md) - [Future Ready 2030: Amazon Is Helping More People Build Skills for New Careers in AI, Robotics, and Beyond | AMZN Stock News](https://longbridge.com/en/news/305340700.md) - [UK aviation regulator clears Amazon for expanded drone delivery](https://longbridge.com/en/news/304998329.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**