Amazon AMZN is laying the groundwork for a free cash flow rebound, even as heavy AI spending pressures near-term cash generation. Last month, Amazon announced that Wiwynn will expand its Texas facility to build server systems and racks for Amazon’s data centers, which strengthens its custom hardware supply. On Oct. 2, it committed more than $1 billion over five years to communities that host its data centers through its Built Together program, easing the path for capacity expansion.
Amazon still generates a lot of cash from operations. Trailing 12-month operating cash flow rose 33% to $161.4 billion as of June 30, 2026. However, free cash flow swung to an outflow of $7.6 billion from an inflow of $18.2 billion a year ago. That reflects a $66.1 billion increase in net capital spending, mainly for AI. Second-quarter net sales grew 20% to $200.6 billion, while operating income jumped 43% to $27.5 billion. AWS sales climbed 37% to $42.2 billion.
Strong visibility into future…
https://finance.yahoo.com/markets/stocks/articles/amazon-stock-poised-gain-strong-162300788.html
