AWS targets $1T revenue, but heavy spending comes first

Amazon CEO Andy Jassy reiterated Thursday that AWS could become the first trillion-dollar revenue business, but said the company will continue massive capital spending to achieve it, with 2026 cash capex expected at approximately $220 billion and more planned for 2027. AWS revenue rose 39 percent year-over-year in the latest quarter, marking six straight quarters of steady growth, and Jassy forecast growth above 40 percent in both 2027 and 2028. He called the AI boom a "once in a lifetime opportunity" worth the substantial investment, noting the company is in "very early days" of enterprise AI adoption. Investors remained skeptical, with shares falling about 6 percent in after-hours trading Thursday. Other cloud providers like Microsoft are also spending heavily on AI infrastructure while posting record revenue growth, reflecting broader industry trends.