Amazon’s ad revenue grew 12% year over year to $19.6 billion in Q3. Growth slowed from 22% in Q3 2025 and 26% in Q2 2026. Prime Day moved from July to June this year. Q3 lacked NBA content on Prime Video. Amazon attributed the shortfall to these timing changes. External AI shopping agents like Meta’s Muse are not yet impacting Amazon Ads. Amazon blocked Muse from its marketplace last month. CEO Andy Jassy said few customers use such agents for shopping. Amazon is developing its own Ads Agent for campaign management. Ads Agent now supports full-funnel capabilities. Amazon forecasts high teens ad revenue growth for Q4. Capital expenditures reached $75.9 billion in Q3. Negative free cash flow hit $42.4 billion.
What changed
Prime Day was held in July and Q3 included NBA streaming on Prime Video.
What it unlocks
No immediate disruption to Amazon Ads from external AI shopping agents.
- $19.6B Q3 ad revenue
- 12% YoY ad revenue growth
- 22% YoY growth in Q3 2025
- 26% growth in Q2 2026
Sources