AWS announced two major partnership expansions in Q2 2026: with OpenAI, expanding the existing $38.0 billion commitment by $100.0 billion over 8 years (announced Q1 2026), and with Anthropic, expanding the strategic collaboration by more than $100.0 billion over 10 years. Both include contractual obligations for performance of AWS chips. AWS remaining performance obligations for contracts with original terms exceeding one year reached approximately $496 billion as of June 30, 2026, with a weighted-average remaining life of 6.4 years.
On April 13, 2026, Amazon entered a definitive merger agreement to acquire Globalstar, Inc. (satellite communications) for approximately $10.9 billion in implied value including debt, with shareholders electing $90.00 cash or 0.3210 Amazon shares per Globalstar share. Amazon also signed agreements with Apple (Globalstar's largest customer) for post-acquisition services and redemption of Apple's equity interest in a Globalstar special purpose entity. Closing is expected in 2027, subject to regulatory approvals and Globalstar satellite replacement milestones.
Capital expenditures accelerated sharply: Q2 2026 capex was $53.1 billion (vs. $31.4 billion in Q2 2025), and six-month 2026 capex was $96.3 billion (vs. $55.6 billion), primarily for technology infrastructure (majority supporting AWS) and fulfillment network capacity. AWS net additions to property and equipment reached $48.6 billion in Q2 2026 (vs. $16.0 billion in Q2 2025); consolidated property and equipment, net rose to $446.0 billion from $357.0 billion at year-end 2025.
In Q2 2026, Amazon invested $10.0 billion in Anthropic nonvoting preferred stock (Series G and H) and amended the commercial arrangement for AWS cloud services and chips; it also established a financing arrangement making up to $20.0 billion available to Anthropic tied to compute delivery milestones. Amazon invested $13.7 billion in OpenAI Series C Preferred Stock in Q2 2026 and, subsequent to June 30, 2026, funded the remaining $21.3 billion commitment (total $28.7 billion investment). Upward fair-value adjustments of approximately $50.5 billion on Anthropic preferred stock were recorded in Q2 2026 other income.
Q2 2026 segment results: consolidated net sales grew 20% to $200.6 billion; AWS sales grew 37% to $42.2 billion with operating income of $16.6 billion; North America sales grew 16% to $116.2 billion with operating income of $9.1 billion; International sales grew 15% to $42.2 billion with operating income of $1.7 billion. Consolidated operating income was $27.5 billion. Net sales of $200.6 billion included approximately $640 million of IEEPA tariff refunds recorded as a reduction to cost of sales, primarily in North America, representing the significant majority of expected refunds.
Amazon issued multiple tranches of long-term debt in H1 2026 (a $37.0 billion U.S. dollar Notes issuance in March, €14.5 billion Euro Notes in March, CHF 2.8 billion in May, and C$14.0 billion in June), entering a $17.5 billion delayed draw term loan in June, and issuing an additional $25.0 billion of U.S. dollar Notes subsequent to June 30, 2026. Total long-term debt more than doubled to $128.9 billion from $65.6 billion at December 31, 2025. Amazon also disclosed energy contracts subject to derivative accounting covering approximately 270 million megawatt-hours with a ~15-year weighted-average remaining duration, producing net unrealized gains of $551 million in Q2 2026 primarily in the AWS segment.
(Filed on April 30, 2026)
+16.6%
51.8%
$101.8B
In Q1 2026, Amazon invested $15.0 billion in OpenAI Series C Preferred Stock and committed to purchase up to an additional $35.0 billion of the same series (with a December 31, 2028 outside date). Concurrently, AWS and OpenAI expanded their existing $38.0 billion multi-year cloud commitment by $100.0 billion over 8 years, with contractual obligations tied to performance of AWS chips, and entered a joint collaboration agreement to make services using OpenAI models available on AWS.
On April 13, 2026 (subsequent to quarter end), Amazon entered a definitive merger agreement to acquire satellite operator Globalstar for approximately $10.9 billion (including debt) via cash and stock consideration (shareholders elect $90 per share in cash or 0.3210 shares of Amazon stock). Amazon also signed agreements with Apple, Globalstar's largest customer, for post-acquisition services and redemption of Apple's equity in a Globalstar special purpose entity. Closing is expected in 2027, subject to regulatory approvals and satellite replacement milestones.
AWS revenue grew 28% year-over-year to $37.6 billion in Q1 2026, with operating income rising to $14.2 billion (from $11.5 billion). AWS net property and equipment additions were $41.5 billion in the quarter (versus $20.5 billion in Q1 2025), and AWS segment PP&E, net reached $223.1 billion. Management stated the majority of technology infrastructure investment is to support AWS business growth and that spending is expected to increase in 2026.
Regarding Anthropic, Q1 2026 included conversion of a portion of Amazon's convertible notes to nonvoting preferred stock, generating a $4.5 billion reclassification gain and a $12.3 billion upward fair-value adjustment for observable price changes (totaling $16.8 billion in other income). Subsequent to March 31, Amazon invested an additional $5.0 billion in Anthropic nonvoting preferred stock, amended its AWS commercial arrangement, and established a financing facility of up to $20.0 billion (drawn via milestones under the amended arrangement; expiring 30 months after a liquidity event such as an IPO). As of March 31, 2026, the carrying value of Anthropic nonvoting preferred stock was $32.0 billion and remaining convertible notes had an estimated fair value of $42.2 billion.
Consolidated net sales grew 17% to $181.5 billion (North America +12% to $104.1B; International +19% to $39.8B; AWS +28% to $37.6B). Advertising services revenue increased 24% to $17.2 billion; third-party seller services grew 14% to $41.6 billion. Operating income rose to $23.9 billion, with a $447 million charge in other operating expense partly attributable to damaged data centers in the Middle East. Q2 2026 guidance calls for net sales of $194–199 billion and operating income of $20–24 billion, assuming Prime Day falls in the quarter.
Total cash capital expenditures in Q1 2026 were $43.2 billion (up from $24.3 billion a year earlier), driven by technology infrastructure and fulfillment network capacity. Trailing-twelve-month free cash flow fell sharply to $1.2 billion (from $25.9 billion in the prior year TTM). In March 2026, Amazon issued $37.0 billion and €14.5 billion ($16.8 billion) of unsecured notes, raising total long-term debt to $119.1 billion (from $65.6 billion at year-end). The company also disclosed $15.4 billion in Q1 cash outlays for acquisition and investment activity, primarily the OpenAI investment, and stated it expects to fund the remaining $35.0 billion OpenAI commitment with cash on hand.
(Filed on February 6, 2026)
+13.6%
48.5%
$86.8B
Q4 2025 (explicitly attributed): Amazon recorded $2.4B in fourth-quarter charges comprising $1.1B for resolution of tax disputes in Italy and a lawsuit settlement (primarily International segment), $730M in severance for planned role eliminations, and $610M in physical store asset impairments (property and equipment and operating leases, primarily North America). Full-year FY2025 severance for role eliminations totaled approximately $2.7B across all three segments ($1.8B in Q3, $730M in Q4).
FY2025 annual context: Cash capital expenditures reached $128.3B (up from $77.7B in 2024), driven primarily by AWS infrastructure and fulfillment network buildout; AWS net PP&E additions were $96.5B and AWS segment assets grew to $252.6B (from $156.0B). Free cash flow declined to $11.2B (from $38.2B) as capex outpaced operating cash flow growth. Consolidated net sales were $716.9B (+12% YoY); AWS sales $128.7B (+20%). Management states it expects capex to continue increasing in 2026.
Anthropic investment and post-year-end impact: Amazon invested $2.7B in Anthropic convertible notes during FY2025. As of December 31, 2025, the position included approximately $14.8B of nonvoting preferred stock and $45.8B of convertible notes at fair value (with $39.5B of unrealized gain in accumulated other comprehensive income). The filing discloses that subsequent to year-end, an additional notes conversion will trigger a ~$3B reclassification gain and a ~$12B upward price adjustment in Q1 2026 P&L. A commercial arrangement exists for AWS cloud services, including use of AWS chips, by Anthropic.
Q1 2026 guidance (issued February 5, 2026): Net sales expected at $173.5–$178.5B (+11% to +15% YoY, with ~180 bps favorable FX); operating income $16.5–$21.5B vs. $18.4B prior year. Guidance explicitly incorporates ~$1B of higher year-over-year Amazon Leo satellite network costs as the service scales, plus investment in quick commerce and sharper pricing in the international stores business. Guidance assumes no additional acquisitions, restructurings, or legal settlements.
Accounting and tax developments (annual): Effective January 1, 2025, Amazon shortened the useful life of a subset of servers and networking equipment from six years to five years, citing the increased pace of AI/ML technology development; this added $1.4B of depreciation in FY2025, primarily impacting AWS. The One Big Beautiful Bill Act of 2025 (signed July 4, 2025) reinstated 100% accelerated depreciation on qualified property and immediate expensing of domestic R&D costs with retroactive application; Amazon reports this significantly decreased FY2025 cash taxes to $8.3B (from $12.3B in 2024) and expects a similar effect in 2026.
(Filed on October 31, 2025)
+13.4%
50.8%
$66.9B
Amazon settled its FTC lawsuit in Q3 2025, recording a $2.5 billion charge in Other operating expense (net) that impacted the North America segment; the company stated it expects to use cash on hand to satisfy the settlement.
Amazon recorded approximately $1.8 billion in estimated severance costs in Q3 2025 (and ~$2.0 billion for the nine months) primarily related to planned role eliminations, affecting all three segments and recorded across Technology & infrastructure, Sales & marketing, and G&A.
Cash capital expenditures surged to $34.2 billion in Q3 2025 (vs. $21.3 billion in Q3 2024) and $89.9 billion for the nine months (vs. $51.6 billion prior year), driven primarily by technology infrastructure investments to support AWS growth and fulfillment network capacity; management expects capex to continue increasing through 2026. AWS property and equipment net additions were $28.3 billion in Q3 2025 vs. $14.3 billion a year earlier.
Effective January 1, 2025, Amazon shortened the useful life of a subset of servers and networking equipment from six to five years, citing increased pace of AI and machine learning technology development; this increased Q3 2025 depreciation by $392 million and reduced net income by $298 million ($0.03/share), impacting the AWS segment primarily.
Amazon's Anthropic investment expanded materially: additional convertible notes converted to nonvoting preferred stock in Q3 2025 (generating a $2.3 billion reclassification gain), a further $7.2 billion mark-to-market upward adjustment was recorded, and a $1.3 billion new convertible note investment was made in Q2 2025 with an additional $1.4 billion planned for Q4 2025; the company also disclosed a commercial arrangement with Anthropic primarily for AWS cloud services including use of AWS chips. As of September 30, 2025, the nonvoting preferred stock carried value was ~$14.8 billion and convertible notes fair value ~$23.7 billion.
