Jassy Targets 40% Growth as AWS Reveals $578 Billion Backlog
The cloud unit’s surge has prompted a multihundred‑billion data‑center buildout that will pressure near‑term cash flow while aiming to lift long‑term returns.
Overview
- AWS posted a record $45.9 billion in quarterly revenue and is running at a $184 billion annual pace, marking its sixth straight quarter of accelerating growth.
- The unit disclosed a $578 billion backlog of orders that Amazon says reflects customers waiting on data‑center capacity and underpins the company’s expansion plans.
- CEO Andy Jassy told investors he expects AWS growth to exceed 40% in both 2027 and 2028 and outlined a multi‑year path that could reach $1 trillion in annual revenue.
- Amazon plans roughly $220 billion of data‑center buildout in 2026 with more spending planned for 2027, a push that analysts say will weigh on free cash flow in the near term.
- Product moves driving demand include rapid Bedrock adoption and a roughly 20x rise in commitments to Graviton and Trainium chips, while Amazon’s consolidated quarter showed a small EPS miss and large paper gains tied to its Anthropic stake.