Amazon's Free Cash Flow Swung $26 Billion in the Wrong Direction. The Stock Rose 15% Anyway.

Amazon reported negative free cash flow of $7.6 billion for the trailing 12 months, a $26 billion swing from the prior year's $18.2 billion inflow. However, the stock surged 15% as investors focused on strong fundamentals: operating cash flow grew 33% to $161.4 billion, and the decline was driven by capital spending ($169 billion, up 64%) primarily for AI infrastructure. AWS delivered exceptional results with 37% revenue growth to $42.2 billion—its fastest in 18 quarters—and operating income jumped 64% with margins expanding to 39.4%. The company projects $220 billion in capital spending for 2026.