Amazon raised its 2026 cash capex guidance to approximately $220 billion in its July 30 Q2 earnings release, up from the $200 billion level held since February, citing higher memory component costs amid robust AI-driven demand for AWS data centers and servers. Q2 AWS revenue grew 36.7% year over year to $42.2 billion—its fastest pace in 18 quarters—while the segment’s backlog reached $496 billion and annualized run rate hit $169 billion. This spending pace has driven trailing twelve-month free cash flow negative at $7.6 billion, with management noting capacity constraints will likely persist through 2027 and visible demand extending into 2028. The primary near-term catalyst remains Q3 results, expected in late October, which will clarify whether component inflation or demand signals prompt further revisions.