AMZN · 10-Q · 2026Q3 · Full report

Operating Expense Trends

AMAZON COM INC · 2026-10-30 · Importance 54 · Surprise 40

Total operating expenses rose from $162.747 billion to $173.868 billion in Q3 2026 and from $448.540 billion to $504.680 billion for the first nine months of 2026. Technology and infrastructure costs increased to $34.814 billion in Q3 and $97.539 billion for the nine months, primarily reflecting infrastructure spending, including depreciation and amortization; management cited AI and machine-learning initiatives as areas of continuing investment. Fulfillment costs rose to $29.997 billion in Q3 and $86.919 billion for the nine months due to increased sales and fulfillment-network investment, partly offset by operational efficiencies. Cost of sales increased to $94.573 billion in Q3 and $277.814 billion for the nine months, while cost of sales as a share of sales declined from 49.2% to 46.8% in Q3 and from 48.9% to 47.6% year to date, with higher product and shipping costs partly offset by efficiencies.

Key facts

• Amazon currently expenses the majority of costs associated with development of its satellite network for global broadband service, including production, launch, payroll, and launch-services deposits upon launch; it will capitalize certain costs once the service achieves commercial viability, including sales to customers. source
• Amazon shipping costs were $25.3 billion in Q3 2025 and $28.3 billion in Q3 2026, and $71.2 billion and $81.9 billion for the nine months ended September 30, 2025 and 2026, respectively. source
• For every 1% of additional inventory valuation allowance as of September 30, 2026, Amazon would have recorded approximately $445 million of additional cost of sales. source
• Other operating expense, net, was $2.9 billion in Q3 2025 and $134 million in Q3 2026, and $3.4 billion and $671 million for the nine months ended September 30, 2025 and 2026, respectively. source
• Amazon says reducing commitments for certain electronic device components and products may incur additional costs. source
• Amazon expects shipping costs to continue to increase as customers use shipping offers at an increasing rate, the company uses more expensive shipping methods, and it offers additional services. source