AWS's Road to a Trillion | Tomasz Tunguz
AWS grew 36.7% in Q2 2026 to $42.2b, its fastest in 18 quarters, narrowing Azure's lead from 16 points to 6. Jassy said AWS has the potential to become a $1 trillion annual revenue business, against a current $169b annualized run rate. Amazon raised 2026 capex to $220b and trailing free cash flow fell to negative $7.6b.
Andy Jassy said AWS has “the potential to be a $1 trillion revenue business.”1 Where Amazon once thought the ceiling was a few hundred billion, it now believes the business “will be at least double that.” AWS finished the quarter at a $169b annualized run rate. Amazon’s torrid growth fuels the capitalist dream. AWS grew 36.7%, the fastest in 18 quarters & the fifth consecutive quarter of acceleration.2 Five quarters ago it grew 17%; today, 37%. AWS traces the second steepest trajectory on that chart, 20 points of acceleration over six quarters against Google Cloud’s 54. Azure is close to…
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