Story

AWS Revenue: ~$35B (up 24% yoy, fastest growth in 13 quarters)

AWS Operating Income: ~$12B (up 17% yoy)

"AI, chips, robotics, and low earth orbit satellites: ..we expect to invest about $200 billion in capital expenditures across Amazon in 2026.."

This is eating into Free Cash Flow (FCF) which shows a downtrend over the last 5 quarters to ~$11B. In contrast MSFT free cashflow also down to ~$5B. (FCF = Operating cash flow - capex)

Custom chips: Trainium and Graviton now have a combined annual revenue run rate of over $10 billion and growing at a triple digit percentage year-over-year.

Lots of agent-related new releases in this quarter: Nova Act (for building AI agents for UI workflows); Amazon Bedrock AgentCore (infrastructure building blocks to build agents); "frontier agents" Kira, AWS Security Agent, AWS DevOps Agent; Agentic AI capabilities for Amazon Connect (call center platform)