Amazon’s 2026 capital expenditures guidance stands at approximately $220 billion following a July 2026 upward revision from $200 billion, driven primarily by elevated memory component costs amid surging AWS and generative AI demand. AWS revenue grew 36.7% year-over-year in Q2 to $42.2 billion with a $496 billion backlog, while management noted that even this level of spending will fall short of meeting contracted capacity needs through 2027. Trailing twelve-month free cash flow turned negative at roughly $7.6 billion as property and equipment purchases accelerated, pressuring near-term cash generation despite expanding operating income. Q3 2026 results, expected imminently, will provide updated operating income guidance between $22.5 billion and $26.5 billion and any signals on further capex adjustments tied to AI infrastructure buildout. Trader sentiment reflects the tension between robust demand visibility and the risk of additional cost-driven revisions.