How much did Amazon spend on property and equipment in the third quarter?

Amazon spent about $77 billion on property and equipment from July through September, more than double the $35 billion it spent a year earlier.

How has Amazon's debt and cash position changed?

Long-term debt reached about $173 billion at the end of September, up from about $66 billion at the end of 2025, while cash fell to about $56 billion from about $87 billion.

What did CEO Andy Jassy project for AWS growth?

Jassy said he projects AWS growth of more than 40% in both 2027 and 2028.

AI Business & IndustryYahoo Finance AI5m agoOct 30, 2026, 19:01 JST

Amazon posts record $42 billion cash burn on AI build-out

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3 Key Points

What happened
Amazon's free cash flow was an outflow of more than $42 billion over the 12 months through September, nearly double the previous record of about $23 billion set in 2022.
Why it matters
The record cash burn reflects how heavily Amazon is funding its AI build-out, and the scale of the outflow is unprecedented for the company.

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Context & Analysis

Amazon's record cash outflow comes as the company pours money into data centers and equipment to support AI services. The third quarter alone showed a gap of roughly $33 billion between operating cash inflow and capital spending, a sharp acceleration from the less than $8 billion outflow three months earlier.

So far, the spending appears to be paying off. Amazon Web Services grew 39% to about $46 billion, its fastest pace in nearly five years, and the company's operating margin hit a record high. CEO Andy Jassy expects that momentum to continue, projecting AWS growth above 40% in 2027 and 2028.

To fund the build-out, Amazon has taken on debt, with long-term borrowings rising sharply and cash reserves declining. Bond traders have taken notice: the cost of insuring Amazon's debt against default has climbed about 50% since early August, implying a roughly 7% chance of default over five years, up from about 5%.

FAQ

How much did Amazon spend on property and equipment in the third quarter?: Amazon spent about $77 billion on property and equipment from July through September, more than double the $35 billion it spent a year earlier.
How has Amazon's debt and cash position changed?: Long-term debt reached about $173 billion at the end of September, up from about $66 billion at the end of 2025, while cash fell to about $56 billion from about $87 billion.
What did CEO Andy Jassy project for AWS growth?: Jassy said he projects AWS growth of more than 40% in both 2027 and 2028.

Yahoo Finance AIRead Original Article

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