Amazon Lifts AWS Revenue 28% to $37.6 Billion, Plans $200 Billion Capex in 2026

2 articles · Updated · The Motley Fool · Jun 19

AWS generated $37.6 billion in first-quarter revenue, up 28% from a year earlier—the cloud unit’s fastest growth in 15 quarters and a roughly $150 billion annual run rate.
AI drove the acceleration: AWS AI revenue topped a $15 billion annual run rate, backlog reached $364 billion before a recent Anthropic commitment worth more than $100 billion, and custom chips exceeded a $20 billion run rate.
AWS supplied about 21% of Amazon’s $181.5 billion quarterly revenue but roughly 59% of operating income, helping lift companywide operating margin to a record 13.1%.
Amazon is now preparing a much heavier build-out, targeting about $200 billion in capital expenditures in 2026 after spending $43.2 billion in the first quarter, mostly on AWS and AI.
That investment surge has cut trailing 12-month free cash flow to about $1 billion and leaves Amazon exposed if AI returns disappoint or component costs—especially memory—keep rising.

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The Motley Fool1d ago

Amazon's AWS Revenue Jumps 28% in Q1 to $37.6B, Driven by AI; $200B Capex by 2026

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Overview

Amazon is projecting strong growth for Q2 2026, with net sales expected between $194 billion and $199 billion, surpassing market expectations. This positive outlook is driven by significant strategic investments, including an ambitious commitment to its Leo internet-from-space service, which is set for commercial launch soon. These investments reflect Amazon’s focus on leading in emerging technologies and absorbing substantial capital expenditures. The company’s robust guidance and forward-looking strategy highlight its confidence in maintaining momentum, even as it undertakes large-scale projects that are shaping its future growth and market leadership.

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