Key Points
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Amazon plans to allocate $200 billion for capital expenditures in 2026, up from $131 billion in 2025.
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The company is projected to report a free cash flow loss of $10 billion in 2026, down from $1.2 billion in the past 12 months.
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As of March 31, Amazon Web Services (AWS) has a customer backlog of $364 billion, excluding a $100 billion deal with Anthropic.
Amazon (NASDAQ: AMZN) aims for $200 billion in capital expenditures in 2026 to support its focus on cloud computing and generative AI. This significant increase in spending comes amidst a projected $10 billion free cash flow loss for the year, largely due to aggressive investments in infrastructure to meet growing demand from its AWS segment.
As of March 31, AWS reported a backlog of $364 billion in customer commitments, underlining the ongoing demand for its services. Despite the financial strain, Amazon’s leadership maintains that these investments are essential for long-term revenue growth.
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