Amazon Q1 Financial Highlights
In the first quarter of 2026, Amazon (NASDAQ: AMZN) reported revenue of $182 billion, driven primarily by its retail operations. However, the focus remains on Amazon Web Services (AWS), which achieved a 28% year-over-year revenue increase, the highest growth rate in over three years. AWS ended Q1 with a backlog of $364 billion, marking a 49% increase quarter-over-quarter, bolstered by significant spending commitments from major clients like Anthropic and OpenAI.
As of May 2026, Anthropic and OpenAI have a combined annual revenue run rate of $72 billion, with AWS commitments amounting to approximately $27 billion annually, constituting 38% of their total revenue. Despite these figures, concerns arise from the companies’ obligations to other cloud providers, potentially impacting AWS’s backlog stability. Additionally, Amazon plans to invest $200 billion in capital expenditures over the next year, which is expected to result in an $11 billion negative free cash flow, prompting a reevaluation of its financial outlook.
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