Amazon's Free Cash Flow Went Negative by $7.6 Billion Even as Operating Cash Flow Rose 33%. Here's the Gap AI Capex Is Actually Creating.
Amazon is spending huge sums of money on AI, and that money has to come form someplace.
Amazon, despite reporting a surge in earnings, experienced a significant setback in its free cash flow, with a deficit of $7.6 billion in the second quarter of 2026, even as its operating cash flow grew by 33%. This discrepancy arises from the company's $69 billion in other income, primarily from its investment in Anthropic. However, if the value of Anthropic were to decline, Amazon's gains could be reversed.
The earnings per diluted share reached $5.75, a stark contrast to the $1.68 reported in the same period of the previous year.
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