Matt Day / Bloomberg : Amazon spent $77B+ on property and equipment in Q3, leading to a free cash outflow of $42.4B; Amazon said in July that it would likely spend $220B in 2026 capex — Amazon.com Inc. spent more than $77 billion on property and equipment in the third quarter, far more than analysts' estimates …
Amazon spent $77B+ on property and equipment in Q3, leading to a free cash outflow of $42.4B; Amazon said in July that it would likely spend $220B in 2026 capex (Matt Day/Bloomberg)
In short
Elevated spending during the third quarter pushed the company into a free cash outflow position of $42.4 billion. The surge was driven by more than $77 billion allocated specifically to property and equipment, significantly outstripping projections from Wall Street analysts. This heavy investment strategy reflects earlier forward-looking guidance, including an announcement from July projecting massive capital commitments reaching $220 billion in 2026.
Key points
- Heavy quarterly investments caused the company to record substantial negative free cash f…: Heavy quarterly investments caused the company to record substantial negative free cash flow.
- Management previously projected that capital expenditures would likely reach $220 billion…: Management previously projected that capital expenditures would likely reach $220 billion by 2026.
- The current expenditures reflect an ongoing alignment with the firm's long-term spending…: The current expenditures reflect an ongoing alignment with the firm's long-term spending blueprint.