Amazon’s 2026 capital expenditure guidance stands at approximately $220 billion following its July 30 earnings release, up from the prior $200 billion target set earlier in the year. The increase stems primarily from higher memory component costs and accelerated investment in AI infrastructure and data centers to address surging AWS demand. AWS revenue rose 37% year over year in the second quarter to $42.2 billion, with operating income climbing 63% and a $496 billion backlog providing visibility into future utilization. Management noted that even at the elevated spend level, capacity will remain constrained through 2026 and likely into 2027, mirroring patterns from prior cloud build-outs. Free cash flow has turned negative on a trailing-twelve-month basis as capex outpaces operating cash generation, though executives project improved returns once revenue scales. Q3 results, expected later this month, represent the next key update for any revisions to the full-year figure.