Amazon Lifts Sales 17% to $181 Billion as AWS Jumps 28% on AI Demand
Updated
Updated · The Motley Fool · May 31
Amazon Lifts Sales 17% to $181 Billion as AWS Jumps 28% on AI Demand
3 articles · Updated · The Motley Fool · May 31
$181 billion in quarterly sales marked a 17% year-over-year gain for Amazon, with online stores posting their strongest unit growth in four years.
AWS drove much of that momentum, with revenue up 28% as companies bought AI services and Amazon's Trainium, Graviton and Nitro chips, now running at a $20 billion annualized revenue pace.
Nearly $200 billion in capital spending this year — up 32% — is aimed at adding cloud capacity, data centers and logistics infrastructure, even as trailing-12-month free cash flow fell to $1.2 billion.
Amazon is betting the spending will pay off across e-commerce, cloud and its satellite internet buildout, while Wall Street expects free cash flow to rebound to $81 billion by 2028.
After a rocket explosion and soaring costs, can Amazon's colossal AI and space gamble actually pay off for investors?
With its own custom chips, is Amazon building an empire to challenge Nvidia's long-standing AI dominance from within?
Can Amazon's Project Leo realistically challenge SpaceX's Starlink network with thousands fewer satellites and a recent launch setback?
Amazon Q1 2026 Report: AWS Growth, Custom Silicon, and AI Partnerships Drive Long-Term Upside
Overview
Amazon delivered strong financial results in Q1 2026, with broad growth across its business segments. The main driver was the re-acceleration of Amazon Web Services (AWS), which achieved its fastest growth in 15 quarters with a 28% increase. This momentum was supported by impressive contributions from Amazon’s chips business, advertising arm, and retail stores. The report highlights how AWS’s renewed growth, combined with advances in custom silicon and strong performance in other segments, positions Amazon for continued leadership in cloud computing and artificial intelligence, while also navigating emerging risks and regulatory challenges.