Amazon Shares Drop as AI Investment Pushes Free Cash Flow Negative

Amazon shares fell 6.5% in after-hours trading Thursday after the company reported a $42.4 billion trailing-12-month free cash flow outflow, as heavy investment in AI infrastructure weighed on cash generation. Amazon also reported third-quarter sales of $201.9 billion, up 12% year over year, and reiterated its expectation of about $220 billion in 2026 cash capital expenditures. Amazon’s results showed that free cash flow swung from a $14.8 billion inflow in the 12 months ended September 30, 2025. The company attributed the change primarily to a $94.8 billion year-over-year increase in purchases of property and equipment, primarily reflecting AI investment.