Andy Jassy says AWS will "not have enough capacity" for 2026 demand

At Amazon, CEO Andy Jassy said the company anticipates its cloud division will keep facing a supply gap next year as customer demand outpaces available computing resources, according to an article on AWS’s recent results and outlook. The article says AWS revenue hit $42.23 billion in the second quarter of fiscal 2026, up 37% year over year, its fastest expansion in 18 quarters. It also notes Amazon raised its 2026 capital-spending estimate to about $220 billion from roughly $200 billion, citing higher memory costs, while free cash flow was negative $7.6 billion over the trailing 12 months. The context includes a $496 billion AWS backlog growing at triple-digit rates and multi-year AI chip commitments from Anthropic and OpenAI. The remark matters because Amazon’s growth outlook depends on AWS capacity keeping pace with demand while spending pressures cash flow.