Yahoo Finance·2026-02-06 21:04Core Insights - Amazon's latest financial report showed mixed results, with net sales of $213.4 billion, a 14% year-over-year increase, and diluted EPS of $1.95, a 4% rise, slightly below analysts' expectations [2][3] Group 1: Financial Performance - In Q4, Amazon's net sales reached $213.4 billion, climbing 14% year-over-year, or 12% in constant currency [2] - Diluted EPS was reported at $1.95, which is a 4% increase, but slightly below the consensus estimate of $1.96 [2] - Amazon Web Services (AWS) revenue was $35.6 billion, marking a 24% year-over-year growth, the fastest in over three years [3] Group 2: AWS and AI Demand - AWS remains supply constrained due to high demand for AI and cloud services, with customers running large AI workloads [4] - Amazon plans to invest $200 billion in capital expenditures by 2026, primarily for AWS, which is a 53% increase compared to 2025 [5] Group 3: Competitive Landscape - Alphabet's Google Cloud grew 48% year-over-year, significantly outpacing AWS's 24% growth and Microsoft Azure's 39% growth [6] - CEO Andy Jassy emphasized the difference in growth rates, noting that a 24% growth on a larger base is more significant than higher percentage growth on a smaller base [7]