Amazon capital spending is expected to rise sharply in 2026. The company announced plans to increase capital expenditures by about 50% compared with the previous year. Total capital spending for 2026 is projected to reach approximately $200 billion. The disclosure was made during the company’s latest earnings update.
The increase in Amazon capital spending exceeded analyst expectations. Wall Street forecasts had estimated capital expenditures closer to $150 billion. The higher figure led to an immediate reaction in financial markets.
Market Reaction to Amazon Capital Spending Plans
Amazon shares declined following the announcement. The stock dropped more than 9% during regular trading after the release. In after-hours trading, shares fell by more than 11%. The decline erased more than $250 billion in market value at its peak.
Investors reacted to concerns over the scale and timing of the spending increase. The market response followed similar reactions seen across the technology sector when large capital commitments are announced.
Amazon Capital Spending Focus Areas
Amazon stated that the rise in capital spending will support multiple infrastructure initiatives. A significant portion of the investment will be directed toward data centers. The company also plans to expand capacity for artificial intelligence workloads.
Amazon Web Services remains a key focus area. AWS recorded 24% year-over-year revenue growth in the fourth quarter. Quarterly AWS revenue reached approximately $35.6 billion. The company cited continued demand for cloud computing services.
Additional capital spending will support custom AI chips, robotics, and satellite technology projects. These investments are intended to expand long-term operational capacity.
Financial Context and Recent Spending Trends
Amazon reported $213.4 billion in quarterly revenue for the fourth quarter. Net income for the period totaled $21.2 billion. Capital spending has already risen significantly in recent years.
In 2025, Amazon spent approximately $131 billion on property and equipment. This was a large increase from about $38 billion in 2024. The company has also reduced its workforce by more than 30,000 employees since late 2025 as part of broader cost adjustments.
The 2026 spending plan continues a trend of elevated investment levels across Amazon’s core businesses.
