Amazon raised its 2026 cash capital expenditure guidance to approximately $220 billion during the Q2 2026 earnings call, up from a prior $200 billion target, with the $20 billion increase attributed primarily to higher memory chip costs amid surging AI infrastructure demand. Management noted that even this level would fall short of meeting all AWS customer commitments for the year, with similar dynamics expected in 2027, supported by a $496 billion backlog and 36.7% AWS revenue growth to $42.2 billion. Quarterly property and equipment purchases reached $53.1 billion, driving trailing twelve-month free cash flow negative at $7.6 billion. Traders are monitoring potential further revisions, Q3 results, and whether revenue growth from AI workloads can offset the elevated spending trajectory.