Overview
- AWS revenue rose 24% to $35.6 billion in the fourth quarter, its fastest growth in more than three years on rising AI workloads.
- Amazon said its in-house Trainium and Graviton processors now exceed a $10 billion annual run rate, underscoring its custom silicon strategy.
- CEO Andy Jassy said most outlays will target AWS compute and chips and emphasized that new capacity is being monetized as quickly as it is installed.
- Shares fell about 10% after the forecast and softer profit guidance, as analysts pressed for clearer guardrails and evidence of returns.
- Heavy infrastructure spending cut free cash flow to $11.2 billion in 2025 despite $139.5 billion in operating cash, and rivals also telegraphed massive 2026 capex plans including Alphabet at $175–185 billion and Meta at $115–135 billion.