Amazon: Strong AWS Rebound, But AI Spending Clouds the Cash Flow Story

Revenue and profits surge, but massive capex raises new questions

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Estimated reading time: 6 minutes

Amazon closed 2025 with strong momentum.

Revenue grew. AWS reaccelerated. Operating income expanded sharply.

But beneath the surface, a new concern emerged.

The key question: can Amazon justify its massive AI-driven capex or will free cash flow remain under pressure?

Key Takeaways

• Revenue: $213.4B (+14% Yo…