Overview
- CEO Andy Jassy said most of the record 2026 outlays target AWS infrastructure across AI, custom chips, robotics and low‑Earth‑orbit satellites, arguing new capacity is being monetized as it comes online.
- AWS revenue rose 24% to $35.6 billion in Q4, its fastest growth in 13 quarters, with an annualized run rate of $142 billion and higher operating income versus a year earlier.
- Amazon disclosed its in‑house Trainium and Graviton chips now exceed a $10 billion annual revenue run rate, positioning homegrown silicon as a key driver of AI workloads on AWS.
- The company guided Q1 operating income to $16.5–$21.5 billion, below analyst expectations, and reported 2025 free cash flow of $11.2 billion after heavy infrastructure spending.
- Jassy said AWS added 3.9 gigawatts of power over the past year and plans to double capacity again by the end of 2027, underscoring an industry capex race that also includes Alphabet and Meta.