Amazon's debt more than doubled, and shares fell in premarket after results

what happened

Amazon reported third-quarter 2026 revenue of $201.94 billion and earnings of $1.89 per share, slightly below expectations. AWS revenue reached roughly $46 billion, up 39%, with operating income near $17.8 billion. According to TradingView, the shares dropped about 6.7% in premarket trading.

Long-term debt rose from $65.6 billion at the end of 2025 to $173.1 billion as of September 30, 2026, mainly to fund AI data center work at AWS. The company also secured a supplier financing line of up to $80 billion, available from early 2027 through Q3 2028, with lenders receiving collateral rights over assets bought with that money.

Amazon's five-year CDS hit a record 94 basis points after weak results, higher capital spending and the slowest e-commerce growth in three years. The move coincided with record CDS levels at other big tech peers.

why it matters

The key question for markets is whether the huge AI spending by the largest tech companies will pay off. Rising debt and higher default protection costs suggest investors are starting to demand a bigger risk premium on these companies' bonds.

market impact

Amazon shares and bonds: rising debt and CDS weigh on the stock and credit after weak results and AI capex

• ▼Amazon shares pressure down — weak results and rising debt amid heavy AI capital spending
• ▼Amazon bonds pressure down — record CDS signals higher cost of protection against default

tags

instruments