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Amazon hikes 2026 capex to $220 billion due to higher memory costs
['Annie Palmer', 'In Annierpalmer']
International: Top News And Analysis
Amazon reported surging cloud growth during the second quarter, pointing to strong artificial intelligence demand, and the company boosted its capital spending forecast for the year.
Here's how the company did, compared with estimates from analysts polled by LSEG:Earnings per share: $1.97 adjusted vs. $1.82 estimated$1.97 adjusted vs. $1.82 estimated Revenue: $200.61 billion vs. $196.47 billion estimatedWall Street was also looking at other key revenue numbers:Amazon Web Services: $42.2 billion vs. $40.54 billion expected, according to StreetAccount$42.2 billion vs. $40.54 billion expected, according to StreetAccount Advertising: $19.81 billion vs. $19.43 billion expected, according to StreetAccountAmazon said it expects to spend even more on AI, with capital expenditures projected to hit $220 billion this year, CEO Andy Jassy said on a conference call with investors.
In February, the company said capex would hit $200 billion this year, and it held steady on that forecast in April.
Jassy said rising memory prices pushed its capex estimate higher.
Wall Street had anticipated Amazon would boost its capex forecast after Alphabet hiked its spending plans to as high as $205 billion.