Amazon raised its 2026 cash capital expenditure guidance to approximately $220 billion in July following second-quarter results, up from a prior ~$200 billion estimate, primarily due to higher memory costs and sustained AI infrastructure demand exceeding available capacity. This spending, focused on data centers, servers, and networking for AWS, follows a sharp rise in property and equipment purchases that drove trailing twelve-month free cash flow negative at $7.6 billion as of June 30 despite operating cash flow of $161.4 billion. AWS revenue accelerated 37% year-over-year to $42.2 billion with a $496 billion backlog, signaling durable demand, while peers Microsoft and Alphabet pursue comparable ramps. Traders will monitor the late-October third-quarter earnings release for any further guidance updates or spending pace indicators ahead of year-end resolution.