Amazon Misses Targeted Q4 Income, Forecasts $200B in CapEx

Cloud giant Amazon reported fourth-quarter results after the bell, as a miss on its first-quarter operating income outlook and a massive expansion in capital expenditures for 2026 sent shares plunging.

Amazon said it anticipates first-quarter operating income of between $16.5 billion and $21.5 billion, below analysts’ expectations of $22.2 billion. (Photo: Amazon) 

Amazon stock fell about 10 percent in early trading Friday, Daniel Howley reported for Yahoo Finance.

Amazon said it anticipates first-quarter operating income of between $16.5 billion and $21.5 billion, below analysts’ expectations of $22.2 billion.

On top of that, the company said it will spend upward of $200 billion on capex this year, a massive jump from the $125 billion it was set to spend in 2025.

“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 returns on invested capital,” CEO Andy Jassy said in a statement.