Amazon reported mixed financial results in Q4, with revenue exceeding estimates but earnings falling short. CEO Jassy highlighted e-commerce growth and improved delivery speeds. Despite this, shares dropped over 8% due to a higher-than-expected forecasted capital expenditure of $200 billion for 2026. Net sales rose 14% to $213.4 billion.

In North America, Amazon’s largest e-commerce segment, sales increased by 10% to $127.1 billion. Operating income reached $25 billion, boosted by enhanced fulfillment-network efficiency. Prime members in the U.S. received over 8 billion items the same or next day in 2025, with same-day delivery being the fastest-growing option.

Amazon expects Q1 2026 net sales of $173.5 billion to $178.5 billion, reflecting 11% to 15% year-over-year growth. Operating income is forecasted at $16.5 billion to $21.5 billion, with increased investments in Amazon Leo, quick-commerce offerings, and international pricing. Capital expenditures for 2026 are projected to reach $200 billion.

The majority of Amazon’s $200 billion capital expenditure in 2026 will go towards data centers, fulfillment operations, delivery infrastructure, and automation. CFO Wachter noted strong demand for these services, with a significant portion of the investment allocated to AWS and AI workloads. Amazon’s aggressive infrastructure expansion aims to meet growing demand.

Read more at Yahoo Finance: Amazon posts Q4 gains from fulfillment orders and faster last-mile delivery