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Amazon.com’s $496 Billion AWS Backlog — Is The AI Tipping Point Finally Here?

Amazon.com reported second quarter 2026 revenue of $200.6 billion, representing a 20% year-over-year increase, and operating income of $27.5 billion, a 43% rise year-over-year. Amazon Web Services (AWS) was a major driver with revenue growth of 36.7% year-over-year, marking its fastest rate in 18 quarters, and an annualized revenue run rate of $169 billion. AWS benefits from strong growth across both core and AI-related services with an extensive customer backlog of $496 billion, exhibiting triple-digit growth. The cloud division’s operating income reached $16.6 billion, reflecting gains in efficiency and server capacity optimization. Amazon’s investment in AI infrastructure continues to be significant, with $53.1 billion in cash capital expenditures during Q2, primarily to support AWS and generative AI services. Capital spending for 2026 is expected to reach approximately $220 billion, revised upward due to memory cost inflation.