AWS Backlog Hits $578 Billion as Amazon CEO Andy Jassy Says It Has More Than Doubled
Key Takeaways
- •AWS's contract backlog reached $578 billion, up roughly 59% since the end of Q1 2026 and more than double the year-earlier level.
- •Q2 2026 revenue of $42.2 billion grew 37% year over year, AWS's fastest growth in 18 quarters, at an annualized run rate of about $169 billion.
- •CEO Andy Jassy said AWS capacity for 2026 is sold out, 2027 is largely booked, and substantial commitments have already been made for 2028.
- •Amazon raised its 2026 capital expenditure forecast to approximately $220 billion from around $200 billion, partly due to rising memory costs.
- •The backlog now covers roughly three and a half years of future revenue, but heavy spending could weigh on free cash flow and revenue depends on bringing data centers online on schedule.
Amazon Web Services' backlog of contracted future business has climbed to $578 billion, and the figure has more than doubled year over year, according to Amazon CEO Andy Jassy. The milestone caps a year of soaring AI-driven demand that has left the cloud unit's capacity sold out.
The numbers behind the queue
The $578 billion figure marks another steep ascent. AWS reported a contract backlog of $496 billion as of June 30, 2026 — itself a jump from $364 billion at the end of the first quarter. The move from $496 billion to $578 billion adds another $82 billion to the queue, leaving the backlog up roughly 59% since the end of Q1.
The backlog consists largely of multi-year customer commitments. Much of that demand is tied to AI workloads, which require enormous amounts of computing capacity to train and run models. Because these commitments convert into revenue only as contracts are fulfilled over time, the backlog is best read as a gauge of demand already under contract rather than one-off bookings.
Revenue has been moving in the same direction. In Q2 2026, AWS brought in $42.2 billion, up 37% year over year — the unit's fastest growth rate in 18 quarters. That puts AWS at an annualized run rate of roughly $169 billion. Even at the earlier $496 billion level, the backlog represented nearly three years of future revenue at that pace; at $578 billion, the coverage stretches to roughly three and a half years.
Sold out, and spending to catch up
Jassy has been unusually blunt about how tight supply has become. In an October 2026 interview, he indicated that AWS cloud capacity for 2026 is sold out. Capacity for 2027 is largely booked as well, and substantial commitments have already been made for 2028.
To keep pace, Amazon has raised its 2026 capital expenditure forecast to approximately $220 billion, up from a previous estimate of around $200 billion. Rising memory costs are part of the reason for the increase: building data centers for AI requires vast quantities of chips and memory, and those components have grown more expensive.
AWS's operating margin stood at approximately 39% in Q2, making it a high-margin driver for the broader company.
Why the backlog matters
The pace of the climb across 2026 is striking: $364 billion at the end of Q1, $496 billion by mid-year, and now $578 billion. Amazon's Q3 earnings are scheduled for October 29, 2026.
The tradeoff is cash. Spending of approximately $220 billion in a single year could weigh on free cash flow in the near term. There is also an execution question — a backlog only becomes revenue once the capacity exists to serve it, so Amazon's ability to bring data centers online on schedule is now central to the story.
Component costs add another variable. Memory prices have already nudged the capex forecast higher once, and further increases could push it up again.
The main things to watch on October 29 are whether revenue growth holds near the 37% pace, whether margins stay around 39% as spending climbs, and whether Amazon adjusts its capex outlook again.
This article is based on reporting from CryptoBriefing, edited by Diego Almada Lopez.
