Amazon's 2026 capital expenditure outlook centers on an aggressive AI infrastructure buildout, with management raising full-year guidance to approximately $220 billion in late July from the prior $200 billion target announced in February. The increase stems primarily from higher memory costs and sustained demand for AWS data centers, custom silicon such as Trainium and Graviton, and networking capacity that continues to exceed available supply through at least 2027. Trailing twelve-month property and equipment purchases reached $173 billion as of Q2, compressing free cash flow to a $7.6 billion outflow and reflecting the shift toward long-duration assets. Traders monitor upcoming Q3 results and any further revisions for signals on whether actual spending will exceed the updated benchmark amid strong AWS revenue growth.