tech
April 30, 2026
Amazon's cloud business is surging — and so is its capital spending
The e-commerce giant is making more money than expected from AWS but it's also spending a lot, and will continue to do so in the near term, its chief executive said.
TL;DR
- Amazon's AWS experienced 28% year-over-year net sales growth, reaching $37.6 billion, the fastest rate in 15 quarters.
- CEO Andy Jassy attributed AWS's accelerated growth to its crucial role in providing compute power for the AI industry.
- Significant capital expenditures are being made to build out the infrastructure supporting AWS's growth.
- This increased spending on property and equipment, largely related to AI, has led to a decrease in free cash flow.
- Amazon expects this investment cycle to yield substantial downstream revenue and free cash flow in the long term.
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