AWS Eyes $1 Trillion Revenue as Amazon Sets $220 Billion 2026 Capex
Amazon plans about $220 billion in 2026 cash capex, mostly for AWS, as Andy Jassy targets 40% growth and $1 trillion in annual revenue within a decade.
Summary
Amazon CEO Andy Jassy said during the October 29, 2026 earnings call that AWS could become the first business to reach $1 trillion in annual revenue within five to 10 years. AWS has a $184 billion annualized revenue run rate after quarterly revenue rose 39% from a year earlier, extending steady growth to six consecutive quarters. Jassy expects growth above 40% in both 2027 and 2028, supported by new core and AI features, enterprise workloads and added capacity, while calling enterprise AI adoption very early.
Amazon expects about $220 billion in 2026 cash capital expenditure, mostly for AWS, followed by meaningfully higher spending in 2027, which Jassy said has a clear path to financial returns. He described AI demand as a once in a lifetime opportunity that could permanently expand Amazon’s revenue, but analysts repeatedly challenged the spending, growth evidence and expected margins. Amazon shares fell about 6% in Thursday after hours trading. Microsoft is likewise spending heavily while posting record revenue growth driven largely by cloud computing.
Positives
- AWS quarterly revenue grew 39% year over year, marking a sixth consecutive quarter of steady growth.
- AWS reached a $184 billion annualized revenue run rate while Jassy maintained that its opportunity remains substantial.
- Andy Jassy expects AWS growth above 40% in both 2027 and 2028.
- Enterprise demand for core and AI workloads, new functionality and expanding capacity underpin Amazon’s growth forecast.
- Microsoft also posted record revenue growth driven largely by its cloud business despite heavy infrastructure spending.
Risks & concerns
- Amazon expects about $220 billion in 2026 cash capex, mostly for AWS, and meaningfully higher spending in 2027.
- Amazon shares fell about 6% in Thursday after hours trading as investors questioned the scale of infrastructure investment.
- Wall Street analysts repeatedly pressed Andy Jassy for evidence supporting AWS growth and details about expected profit margins.
- Amazon provided no specific 2027 capex figure beyond saying spending would rise meaningfully.
- AWS must sustain growth above 40% in 2027 and 2028 to support Jassy’s trillion dollar ambition.