Amazon CEO Says AWS Can Reach $1 Trillion in Revenue, Plans $220 Billion in Capex for 2026
AWS is running at a $184 billion annualized revenue rate after 39% year-over-year growth, with Andy Jassy forecasting more than 40% growth in 2027 and 2028. Amazon expects roughly $220 billion in 2026 capex, mostly for AWS, and more in 2027.
Amazon CEO Andy Jassy said on October 29, 2026, during the company’s quarterly earnings call that AWS could become a trillion-dollar annual revenue business within the next five to ten years — a scale he described as unprecedented. “There has never been a business with a trillion dollars of annual revenue,” Jassy said on the call.
To reach that target, Amazon plans to spend heavily on infrastructure. Jassy disclosed that the company expects 2026 capital expenditures of approximately $220 billion, with the majority allocated to AWS, and intends to “spend meaningfully more in 2027.” He said the company has “a clear line of sight to attract its financial returns” from that investment.
AWS currently runs at a $184 billion annualized revenue rate, with revenue up 39 percent from the same quarter a year ago — the sixth consecutive quarter of steady growth. Jassy forecast that AWS could grow north of 40 percent in both 2027 and 2028, driven by enterprise demand for cloud and AI workloads and the company’s ongoing capacity expansion.
Jassy framed the spending as a response to what he called a “once in a lifetime opportunity” in AI-driven cloud demand, adding that Amazon was “in the very early days” of enterprise AI adoption and that the company’s “strategy is working.” He said the investment would “forever change the size of Amazon” and its revenue.
Wall Street analysts pressed Jassy repeatedly on the scale of the spending, the signals of future growth, and expected profit margins. Investors were not fully reassured — Amazon shares fell approximately 6 percent in after-market trading following the call.
Amazon is not alone in this position. Microsoft also recently posted record revenue growth driven by its cloud business and has similarly increased capital spending, according to the source.