Amazon Raises Capital Spending to $200 Billion; Shares Plunge

Amazon.com Inc. said in its earnings release that it will invest about $200 billion in capital expenditures in 2026, up from $125 billion in 2025, and the company's shares fell 11% in after-hours trading.

The announcement accompanied fourth-quarter results showing revenue of $213.4 billion and net income of $21.2 billion for the three months ended Dec. 31, 2025, and Amazon Web Services revenue rose 24% to $35.6 billion, the company reported.

Chief Executive Officer Andy Jassy told investors on the earnings call that AI is a "very unusual opportunity" and will be the primary destination for the spending, while Chief Financial Officer Brian Olsavsky said Amazon will seek cost reductions elsewhere, according to the call transcript and company statements.

Analysts and company disclosures show Big Tech firms plan roughly $650 billion in AI-related spending this year, with Alphabet targeting about $185 billion, Meta planning up to $135 billion and Microsoft having spent more than $72 billion to date.

Amazon said it expects sales between $173.5 billion and $178.5 billion for the current quarter, and analysts polled by FactSet said they will watch whether the $200 billion investment produces profitable returns in coming quarters.