Amazon’s 2026 capital expenditure guidance stands at approximately $220 billion after the July 30 Q2 earnings raise from the prior $200 billion target, driven primarily by elevated memory costs amid surging AI infrastructure demand. AWS revenue grew 37% year-over-year to $42.2 billion—its fastest pace in 18 quarters—with a $496 billion contract backlog and annualized run rate near $169 billion, reflecting contracted demand extending into 2028. Year-to-date purchases of property and equipment reached roughly $173 billion through June, pushing trailing twelve-month free cash flow negative at $7.6 billion. CEO Andy Jassy noted that even at the higher spend level, capacity remains insufficient to meet 2026 and 2027 demand. The next potential update arrives with Q3 results, expected in late October, alongside ongoing hyperscaler comparisons to Microsoft and Alphabet.