AWS revenue surged to $42.23 billion in Q2 2026, driven by AI demand and $25 billion annual run rates for chips and AI businesses.
Amazon plans to spend more than $220 billion on AI capital expenditures this year, as AWS revenue reached $42.23 billion in Q2 2026, a 37% year-over-year increase. The growth is fueled by AI and chip businesses, each hitting $25 billion in annual run rates, with contracted demand locking in capacity through 2027.
AWS’s $496 billion backlog reflects strong demand, with Anthropic and OpenAI committing to Trainium chip capacity. Free cash flow turned negative at -$7.6 billion as capex consumed 138% of first-half operating cash flow, but AI contracts secure future revenue.
The company’s $2.921 trillion market cap underscores its push to dominate AI infrastructure, with AWS growth accelerating to its fastest pace in 18 quarters. Amazon Bedrock customers also spent more in Q2 than in all prior quarters combined.