Jassy eyes $1T AWS revenue, plans $220B capex
Original: AWS will be a $1T business, Jassy says. But first, it will spend big.
Why This Matters
AWS's growth rate and spending scale set the tempo for the entire cloud market.
Amazon CEO Andy Jassy forecast AWS will hit $1T in annual revenue within 5–10 years, projecting 40%+ growth in 2027 and 2028. Amazon plans $220B in 2026 capex, mostly for AWS, with even higher spend in 2027.
On Amazon's Q3 2026 earnings call, Andy Jassy made his ambitions explicit: AWS, currently running at $184 billion in annualized revenue, can become the first business in history to generate $1 trillion in annual revenue. To get there, Amazon is spending aggressively. Jassy confirmed 2026 capital expenditures of approximately $220 billion — the majority earmarked for AWS infrastructure — with spending set to rise further in 2027.
AWS revenue grew 39% year-over-year, the sixth consecutive quarter of steady acceleration, and Jassy forecast 40%+ growth in both 2027 and 2028. He framed the spending as a necessary bet on what he called a "once in a lifetime opportunity" in enterprise AI adoption, arguing Amazon needs to invest now to stay the market leader.
Wall Street analysts pressed Jassy repeatedly on the size and timeline of returns. He pushed back, insisting enterprise AI adoption is still in its early stages and that the buildout will "forever change the size of Amazon." Investors weren't fully convinced — shares fell roughly 6% in after-market trading following the call.