Amazon posts Q4 gains from fulfillment orders and faster last-mile delivery

Core Insights - Amazon reported mixed financial results for the fourth quarter, with revenue exceeding Wall Street estimates but earnings slightly missing projections [1][3] - CEO Andy Jassy highlighted the e-commerce segment's ability to deliver essentials to more customers as a key growth driver [1] - The company's shares fell over 8% in after-hours trading due to a forecasted capital expenditure of about $200 billion for 2026, which was higher than expected [2] Financial Performance - Amazon's net sales for the quarter rose 14% year-over-year to $213.4 billion, surpassing estimates [3] - Net income was $21.2 billion, translating to $1.95 per diluted share, which was an increase from the previous year but missed analyst expectations [3] - In North America, sales increased 10% year-over-year to $127.1 billion, with operating income climbing to $25 billion due to improved fulfillment-network efficiency [4] Delivery and Customer Experience - Prime members in the U.S. received over 8 billion items the same or next day in 2025, a 30% year-over-year increase, with groceries and everyday essentials making up about half of that volume [5] - Same-day delivery is Amazon's fastest-growing delivery option, utilized by nearly 100 million U.S. customers last year [5] - The company has improved local inventory placement, leading to faster delivery at lower costs [6] Future Projections - Amazon expects first-quarter 2026 net sales between $173.5 billion and $178.5 billion, indicating 11% to 15% year-over-year growth, aided by a 180-basis-point benefit from foreign exchange [6] - Operating income is projected to be between $16.5 billion and $21.5 billion, compared to $18.4 billion a year earlier, reflecting increased costs related to Amazon Leo and investments in quick-commerce offerings [7] - The company plans to invest approximately $200 billion in capital expenditures in 2026, a significant increase from about $131 billion in 2025, focusing on data centers, fulfillment operations, delivery infrastructure, and automation [8]