Amazon Plans $200B CapEx in 2026 After Q4 Sales Surge, Shares Fall 10%
Amazon posted record Q4 sales of $213.4 billion – up 14% year-over-year – with AWS and advertising both growing over 20% while adjusted EPS of $1.95 missed estimates by $0.03. Management also unveiled a record-high $200 billion capital expenditure plan for 2026, prompting shares to slide nearly 10%.
1. Q4 Financial Results
Amazon delivered record fourth-quarter net sales of $213.38 billion, a 14% increase year-on-year. Adjusted earnings per share were $1.95, missing consensus by $0.03, while net income rose 6% to $21.2 billion.
2. Capital Expenditure Boost
Management announced a $200 billion capital spending budget for 2026, up 53% from $131 billion in 2025. Investors reacted to the aggressive investment plan by driving the stock down nearly 10% in a single trading session.
3. Segment Growth Drivers
AWS revenue climbed 20% to $35.6 billion on robust cloud demand, and advertising revenue grew 20% to $21.32 billion. Retail sales increased across North America by 10% and International by 17%, offsetting the slight earnings miss.
4. Outlook and Valuation
Amazon guided first-quarter revenue of $173.5 billion to $178.5 billion, reflecting 11–15% year-over-year growth. Shares now trade at a near-decade low forward P/E of 28x, highlighting potential long-term value for investors.