AWS aims for $1T revenue, but first it will spend big
In brief
- AWS aims to reach $1 trillion in annual revenue within 5 to 10 years, according to its CEO.
- The company plans $220 billion in capex for 2026, mostly for AWS infrastructure expansion.
- AWS reports 39% year-over-year growth and forecasts 40% growth in 2027 and 2028.
Amazon Web Services (AWS) could become the first company to exceed $1 trillion in annual revenue, according to CEO Andy Jassy. Speaking during the quarterly earnings call, he reiterated this goal while outlining the massive investments required to achieve it.
The company plans capital expenditures (capex) of around $220 billion in 2026, mostly for AWS, with a significant increase expected in 2027. Despite investor concerns about profitability, Jassy argues these investments are necessary to capitalize on surging AI-driven cloud demand. AWS reported 39% year-over-year growth, reaching a $184 billion annualized revenue run rate, and forecasts 40% growth in 2027 and 2028.
Analysts question whether Amazon can generate sufficient margins despite these heavy investments. The CEO describes enterprise AI adoption as the "early days of an era" and insists the strategy will cement AWS as the undisputed leader in the field.
What it changes for you
- Finance & BankingBanks and financial institutions may face higher cloud costs due to AWS's massive investments, but will gain access to more powerful infrastructure for their AI projects.
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