AWS Posts Fastest Growth in 18 Quarters Amid AI Boom

Amazon Web Services (AWS) reported its fastest revenue growth in 18 quarters during the second quarter of 2026, driven by surging demand for cloud computing and artificial intelligence (AI) services. As of June 30, AWS's customer backlog reached an impressive $496 billion, up from $364 billion just three months earlier and representing a triple-digit percentage increase year over year.

The massive backlog underscores the intense demand for AWS's services, prompting Amazon to ramp up its capital expenditures. The company's total capital spending is expected to hit $220 billion this year, reflecting the broader trend among hyperscalers to invest heavily in infrastructure. Chief Financial Officer Brian Olsavsky attributed the acceleration in revenue to customers prioritizing AI, which is fueling the transition to cloud-based solutions.

However, the rapid growth comes with risks. Notably, AWS has signed large multi-year deals with AI labs like Anthropic and OpenAI, each valued at $100 billion. While these agreements highlight AWS's strategic positioning, they also introduce financial risks, as the revenue generated by these AI labs may fall short of their spending commitments in the coming years.

Despite its strong performance, Amazon was not included in The Motley Fool Stock Advisor's latest list of top 10 stocks for investors, suggesting a cautious outlook on the company's future prospects.