Amazon’s 2026 capital expenditures are guided at approximately $220 billion, up from a prior $200 billion target after Q2 2026 results, with the increase attributed primarily to elevated memory chip costs rather than expanded scope. The bulk of spending targets AWS data centers, semiconductors, and AI infrastructure to address a $496 billion backlog and 36.7% year-over-year AWS revenue growth, even as management notes capacity will remain insufficient. This has driven trailing twelve-month free cash flow negative at $7.6 billion, reflecting a $66 billion year-over-year rise in property and equipment purchases. Comparable hyperscaler outlays by Microsoft and Alphabet underscore the sector-wide AI buildout. Traders will monitor Q3 earnings for any further revisions alongside component pricing trends and demand signals.