Amazon’s 2026 capital expenditure guidance now stands at approximately $220 billion after management raised it from $200 billion during the Q2 2026 earnings call, citing elevated memory chip costs amid surging AI demand. AWS revenue accelerated 36.7% year-over-year to $42.2 billion with a $496 billion backlog, yet free cash flow turned negative on a trailing-twelve-month basis as property and equipment purchases reached $53.1 billion in the quarter alone. CEO Andy Jassy noted that even this elevated spend will fall short of meeting all customer demand through 2027, with most 2027 capacity already reserved. Traders are monitoring Q3 results for any further revisions, alongside broader sector trends in data-center construction costs and component pricing that could influence final 2026 outcomes.