Amazon Q2 2026 Earnings: $220B CapEx, AWS 37% Growth, AI Infrastructure Buildout

Amazon's Q2 earnings deep dive reveals massive infrastructure investment: $220B CapEx, AWS growing 37%, and AI stack buildout. Jassy expresses confidence in AI returns, challenging margin dilution fears. Free cash flow negative due to CapEx but backed by long-term contracts. Additionally, Amazon announced it will refund tariff costs after receiving $600M in rebates, a direct win for FBA sellers who may have been overcharged, amid a class-action lawsuit. This signals major changes for FBA sellers in ad costs, fulfillment, and seller tools for years to come.