Amazon burns $33.5 billion in free cash flow as capex surges

Amazon reported third-quarter free cash flow of negative $33.5 billion, compared with a Bloomberg consensus expectation for an outflow of $7.7 billion, according to the report. Quarterly capital expenditure rose 43% from $54.2 billion in the second quarter to $77.3 billion, while trailing free cash flow deteriorated to negative $42.4 billion from negative $7.6 billion three months earlier.

The figures mark a sharp change from the prior quarter's cash position and frame the company's weaker guidance against an unusually heavy investment cycle. The report also says Amazon raised $48 billion to help fund the spending, linking the cash-flow deterioration to external financing as well as operating investment.

The direct mechanism is Amazon's capital budget: higher infrastructure spending consumes cash immediately, while the expected return depends on future revenue and profitability. Amazon's FY2025 company figures show $716.9 billion in revenue, up 12.4% year over year, and a 10.8% net margin, but those older annual figures do not resolve how quickly the latest capex can produce incremental cash flow.

The report's account is based on the quarterly figures and the comparison with consensus; the durability of the spending and the detail behind the weaker guide remain the central uncertainties. The next key evidence will be Amazon's fourth-quarter results and updated spending and cash-flow figures, particularly whether capex remains near the third-quarter level and whether operating cash generation improves.