Amazon's AI Spending Leaves a $7.6 Billion Hole in Its Cash Flow
Amazon's recent earnings statement may have looked impressive, but it tells only part of the story. The company reported $5.75 per diluted share in earnings for the second quarter of 2026, up from $1.68 in the same quarter of 2025.
However, a closer look at Amazon's cash flow statement reveals a different picture. While operating cash flow rose 33% year over year to around $161.4 billion, the company spent $169 billion, leaving a gap of $7.6 billion between its cash generation and spending.
This significant discrepancy is largely due to Amazon's investment in artificial intelligence (AI). The company's AI spending has been driving a substantial portion of its capital investment plan, and it appears that this trend will continue.
As a result, Amazon may need to rely on other sources of funding, such as the $77 billion raised from the sale of long-term debt over the past year. This increase in long-term debt has pushed Amazon's balance sheet into the red, with debt rising from $65.6 billion at the end of 2025 to nearly $128.9 billion by the end of the second quarter of 2026.