Amazon’s Cloud Business Just Did Something It Hasn’t Done in Nearly Five Years

Amazon Web Services (AWS) achieved its fastest revenue growth in nearly five years at 39% year-over-year, reaching $46 billion in Q3 2026, with operating income up 55%. The unit now has a $578 billion contracted revenue backlog and a $184 billion annual revenue run rate. However, Amazon's massive $220 billion capital spending forecast continues to weigh on free cash flow, raising investor concerns about whether AI demand will justify the enormous infrastructure investments.