Amazon swings to $42.4 billion free cash outflow as AI capex more than doubles
In brief
- Amazon's trailing twelve-month free cash flow hit a $42.4 billion outflow, versus $14.8 billion inflow a year earlier.
- Amazon's Q3 property and equipment spending reached $77.3 billion, more than double a year earlier.
- AWS revenue rose 39.3% to $46 billion, its fastest growth in nearly five years.
- Amazon held 2026 capex guidance near $220 billion and signaled spending may climb in 2027.
- Amazon's long-term debt rose to about $173 billion, according to Crypto Briefing.
Where the cash went
Free cash flow is the money left over after a company pays for its operations and its investments in physical assets. Amazon's swing sits squarely in that second bucket.
In the third quarter alone, Amazon spent $77.3 billion on property and equipment, which is more than double what it spent in the same quarter a year earlier. Crypto Briefing reported that the spending is concentrated on AI infrastructure designed to strengthen AWS (the company's cloud business).
The core business didn't stop producing cash. Operating cash flow rose 29% to $168.3 billion over the trailing twelve months, according to the report, but capital spending outran it.
AWS growth accelerates
Total third-quarter revenue grew 12% year-over-year to $201.9 billion. So the top line is still growing at a double-digit pace. AWS was the faster-moving line: revenue there rose 39.3% to $46 billion, which the outlet described as its fastest growth rate in nearly five years.
That's the part of the business Amazon's AI spending is designed to strengthen.
Guidance, debt and the stock
Amazon maintained its capital expenditure guidance at an estimated $220 billion for 2026, and it signaled that spending may climb further in 2027. It's a signal rather than a firm number, but it doesn't point to a pullback. The third quarter's $77.3 billion alone is more than a third of that annual guidance figure.
Long-term debt increased to approximately $173 billion, according to Crypto Briefing.
The stock moved sharply around the release. Shares closed down 4.3% on October 29, the day Amazon released its third-quarter results, then fell a further 7% in after-hours trading, the outlet reported.
Frequently asked questions
Why did Amazon's free cash flow turn negative?
Free cash flow is the money left after a company pays for operations and investments in physical assets. Amazon spent $77.3 billion on property and equipment in the third quarter alone, more than double a year earlier, and Crypto Briefing attributed the swing to AI infrastructure spending.
How much does Amazon plan to spend on capital expenditures in 2026?
Amazon maintained its 2026 capital expenditure guidance at an estimated $220 billion. The company also signaled that spending may climb further in 2027, though that is a signal rather than a firm commitment.
