Amazon’s 2026 capital expenditure outlook centers on a July 30 guidance raise to approximately $220 billion from the prior $200 billion target, driven by elevated memory and component costs for AI infrastructure rather than expanded scope. The bulk of spending supports AWS data centers and generative AI hardware, where Q2 revenue surged 36.7% year-over-year to a $169 billion annualized run rate amid a $496 billion backlog of signed commitments. Management has noted that even this level leaves insufficient capacity to meet 2026 demand, with most 2027 capacity already reserved and visible 2028 commitments emerging. Trailing twelve-month capex reached roughly $173 billion, pushing free cash flow negative at about $7.6–11.6 billion as operating cash flow of $161.4 billion was outpaced. Q3 results, expected later this month, will provide the next read on quarterly run rates and any further cost-driven adjustments.