Overview
- AWS reported a 28% year‑over‑year revenue gain to $37.6 billion and now produces nearly 60% of Amazon’s operating income despite representing roughly 21% of sales.
- Amazon says AI‑related AWS revenue is running above a $15 billion annual rate and its AWS order backlog stood at about $364 billion at quarter end.
- Since the quarter closed Amazon secured a commercial commitment of more than $100 billion from Anthropic and has struck supplier and financing deals to support the build‑out.
- The company plans roughly $200 billion in capital expenditures for 2026 focused on AI data centers and chips, a push that helped operating cash flow rise but cut trailing‑12‑month free cash flow to about $1.2 billion.
- Investors have driven Amazon’s market value to roughly $2.6 trillion over three years and the stock’s outlook now hinges on how quickly the costly infrastructure and large AI contracts produce higher returns for customers and shareholders.