Amazon’s 2026 capital expenditure outlook centers on roughly $220 billion in cash capex, up from an earlier ~$200 billion target, with the $20 billion increase attributed primarily to elevated memory chip costs rather than expanded capacity. The bulk supports AWS and generative AI infrastructure, including data centers, servers, networking, and custom silicon, amid 36.7% AWS revenue growth in Q2 2026 and a $496 billion backlog that signals committed demand exceeding available supply through 2027. This spending has driven trailing twelve-month free cash flow negative, with property and equipment purchases reaching $173 billion, though management anticipates eventual monetization and ROIC recovery similar to prior AWS cycles. Key near-term catalysts include the Q3 2026 earnings release, where operating income and any capex revisions will be watched closely against ongoing AI buildout pressures across hyperscalers.