Amazon CEO Andy Jassy predicted that Amazon Web Services could someday generate $1 trillion in annual revenue, a massive leap from the roughly $150 billion it has produced over the past twelve months. AWS, which accounted for 60% of Amazon's operating profit in the second quarter, recently posted a 37% growth rate, and Jassy noted that the company will not have enough computing capacity to meet demand in 2026, with the shortage expected to last into 2027. If AWS reaches that revenue level with a 39% operating margin, it would contribute about $393 billion in operating income, potentially pushing Amazon's total market capitalization beyond $15 trillion. Amazon's 2026 capital expenditures are projected at $220 billion to support this expansion.
