Amazon Forecasts AWS Growth Above 40% Through 2028 Amid Massive Capital Spending

Amazon projected Amazon Web Services revenue will expand more than 40% in both 2027 and 2028, with CEO Andy Jassy targeting $1 trillion in annual revenue for AWS and retail within five to ten years. For the fourth quarter, Amazon guided net sales between $240 billion and $247 billion and operating income of $28.5 billion to $33.5 billion. In the third quarter, consolidated revenue rose 12% to $201.9 billion as AWS surged 39.3% to $46.0 billion. However, capital expenditures are projected to hit about $220 billion in 2026, dropping trailing 12-month free cash flow to negative $42.4 billion.