Amazon reported Q4 2025 earnings after the market close on February 5, 2026. Shares fell 13.32% to $201.96 in after-hours trading. Analysts anticipated record quarterly revenue of approximately $211.3 billion and earnings of $1.97 per share. The report confirmed that Amazon reached a $700 billion annual revenue milestone.
Investor focus shifted to escalating artificial intelligence capital expenditures, which are projected to exceed $150 billion in 2026. Concerns regarding a stifling capex trajectory and a squeeze on free cash flow outweighed growth in the retail and advertising sectors. AWS revenue was expected to reach $35 billion, representing a growth rate of 21% to 22%.
Shares declined 4.5% during the regular session as AI spending fears mounted. The sharp after-hours drop was further amplified by broader market weakness. Options markets had implied a move of approximately 7%. The bear case was triggered by the significant 2026 spending forecast lacking an immediate revenue offset.