AMZN changes
Pick any two versions below to diff them.
- Balance sheet
- Amazon now borrows to pay for AI data centers, and large stakes in AI companies sit on its balance sheet. At June 30, 2026, it had $132.1 billion of unsecured senior notes at the parent. This is up from $68.8 billion face value of long-term debt at December 31, 2025. It also had $109.8 billion of operating and finance lease liabilities and $9.3 billion of financing obligations. Against this, it had $123.0 billion of cash and marketable securities. Free cash flow was negative $7.6 billion for the 12 months to June 30, 2026. Purchases of property and equipment of $169.0 billion, net of proceeds and incentives, used more than all of the $161.4 billion operating cash flow. Operating income of $51.3 billion in the first half of 2026 covered interest expense of $2.1 billion about 24 times. The $20.0 billion of revolving credit facilities and the $30.0 billion commercial paper programs were undrawn. The ratings are AA at S&P, AA- at Fitch and A1 at Moody's. In February 2026, Moody's moved its outlook back to stable because of higher capital spending. Amazon also holds $122.3 billion of private equity stakes, mostly Anthropic and OpenAI preferred stock. These stakes added large non-cash gains to profit. Anthropic can still ask Amazon to lend up to $15.0 billion under a financing facility. The debt is affordable. But while free cash flow stays negative, each new step of AI spending needs more borrowing until the new capacity earns revenue. As of 2026-06-30.
- Checkpoints
- Oct 29, 2026 (estimate): Q3 2026 results: AWS margin and backlog conversion. Pending. Watch: AWS operating margin near or above the Q2 level of 39.4% and backlog that keeps turning into revenue pass; a margin drop or a stall in AWS growth fails. Feb 2027 (estimate): Q4 2026 results and 2027 capital spending plan. Pending. Watch: Free cash flow that turns toward positive with steady AWS growth passes; a larger 2027 capex plan with still negative free cash flow fails. Mar 29, 2027: FTC marketplace monopoly trial starts in Seattle. Pending. Watch: A settlement or trial progress with no forced change to the marketplace or fees passes; a ruling or settlement that forces large business changes fails.