Key facts
- AWS has an annualized revenue run-rate of $184 billion.
- Amazon expects 2026 cash capex of approximately $220 billion, mostly for AWS.
- AWS revenue grew 39% year-over-year.
- Jassy forecasts AWS revenue growth above 40% for 2027 and 2028.
- Amazon shares fell 6% in after-market trading.
Amazon CEO Andy Jassy reiterated his vision for Amazon Web Services (AWS) to become a trillion-dollar revenue business, emphasizing the extraordinary opportunity ahead. He stated that AWS currently has an annualized revenue run-rate of $184 billion and projected growth exceeding 40% for both 2027 and 2028. To support this expansion, Amazon plans substantial capital expenditures, with 2026 cash capex expected to be around $220 billion, primarily allocated to AWS infrastructure. Jassy characterized the current AI boom as a "once in a lifetime opportunity" that justifies the significant investment required to maintain AWS's leadership position. Despite these projections, investors expressed concern over the large spending, causing Amazon shares to fall approximately 6% in after-market trading on Thursday. Other cloud providers, like Microsoft, are also experiencing strong revenue growth driven by their cloud businesses, alongside significant investment.