Key Points
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Amazon’s AWS cloud business achieved a revenue growth of 28% in the last quarter, reaching $37.6 billion—its fastest rise in 15 quarters.
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The company’s custom chips have surpassed a $20 billion annual revenue run rate.
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Amazon plans to invest approximately $200 billion in capital expenditures by 2026, which is expected to pressure near-term free cash flow, currently at about $1 billion over the past year.
Amazon’s AWS is not just its fastest-growing segment but also the most profitable, contributing 21% of Amazon’s $181.5 billion first-quarter revenue and 59% of its operating income. This capitalizes on a surge in artificial intelligence demand, with AWS’s AI revenue now over $15 billion and a backlog of $364 billion.
To support its growth, Amazon reported $43.2 billion in capital expenditures in Q1 2026. The company’s CEO, Andy Jassy, emphasized the significance of their investments, viewing them as a unique opportunity to reinvent every application known.
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