Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. We're reporting $213.4 billion in revenue, up 12% year-over-year, excluding the impact from foreign exchange rates.
Operating income was $25 billion, and trailing twelve-month free cash flow was $11.2 billion. We're already seeing strong demand in these areas, even in these early innings. AWS growth continued to accelerate to 24%, the fastest we've seen in 13 quarters, up $2.6 billion quarter-over-quarter and nearly $7 billion year-over-year. AWS is now a $142 billion annualized run rate business, and our chips business, inclusive of Graviton and Trainium, is now over $10 billion in annual revenue run rate, growing triple-digit percentages year-over-year.
We continue to add more incremental revenue and capacity than others and extend our leadership position. Bedrock is now a $ multi-billion-dollar annualized run rate business, and customer spend grew 60% quarter-over-quarter. Trainium2 is 30%-40% more price performant than comparable GPUs and is a multi-billion dollar annualized revenue run rate business with 100,000+ companies using it, as Trainium is the majority underpinning of Bedrock usage today. We're seeing very strong demand for Trainium3 and expect nearly all of our Trainium3 supply of chips to be committed by mid 2026.
| Metric | Period | Current guidance |
|---|---|---|
| Net sales | Q1 2026 | $173.5B-$178.5B (FX ~180bps favorable) |
| Operating income | Q1 2026 | $16.5B-$21.5B |
| Total company CapEx | FY 2026 | ~$200B (predominantly AWS) |
| North America cost - Amazon Leo | Q1 2026 | ~$1B YoY cost increase (Leo satellite launches) |
| Trainium3 supply | Mid-2026 | Nearly all supply expected committed by mid-2026 |
| Metric | YoY | Note |
|---|---|---|
| Worldwide revenue | +12% ex-FX ($213.4B) | Strong peak-holiday quarter; 150bps favorable FX; worldwide paid units +12% (highest of 2025). |
| Worldwide operating income | n/a ($25.0B) | Included $2.4B of special charges (Italy tax/lawsuit, severance, physical-store impairments). |
| AWS revenue | +24% ($35.6B) | Fastest growth in 13 quarters, driven by both core and AI services plus 1 GW+ of added capacity; $142B run rate. |
| AWS operating income | n/a ($12.5B) | Strong top-line growth with efficiency gains (software/process optimization, custom networking, silicon); full-year margin 35% (+40bps). |
| North America operating income | n/a ($11.5B) | 9% margin, up from 8% in Q4 2024, on regionalized-network efficiency; carried part of the severance and impairment charges. |
| International operating income | n/a ($1.0B) | 2.1% margin; expanded YoY excluding the Italy tax/lawsuit and severance charges. |
| Advertising revenue | +22% (Q4) | Full-funnel approach and simplified advertiser experience; +$12B incremental revenue in FY2025. |
| Cash CapEx | n/a (~$125B FY2025) | Predominantly AWS AI and custom silicon; expected to rise to ~$200B in 2026. |
| Full-year operating cash flow | +20% (~$39.5B) | Improved operating income and working-capital changes. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AWS growth trajectory | 20.2% YoY in Q3 2025 | 24% YoY in Q4 2025 (fastest in 13 quarters), $142B run rate | — |
| CapEx scale | ~$125B FY2025 | ~$200B planned for FY2026, predominantly AWS/AI | — |
| Custom silicon | Trainium2 fully subscribed (Q3) | 1.4M Trainium2 chips landed; Trainium3 (+40%) launched, near fully committed by mid-2026; Trainium4 in build | — |
| Backlog | $200B (Q3 2025) | $244B, up 40% YoY and ~22% QoQ | — |
| AWS power capacity | 3.8 GW added over 12 months (Q3) | 3.99 GW added over 12 months (1.2 GW in Q4); on track to double again by 2027 | — |
| New growth bets | Leo/Kuiper early (prior quarters) | Amazon Leo (20+ launches in 2026), quick commerce (Amazon Now, 30-min), Nova Forge, agents | — |