Amazon raised its FY26 capital expenditure guidance to about USD 220 billion from about USD 200 billion earlier, driven by high memory costs amid robust demand for AWS and AI services, according to a Nuvama Research report. Amazon posted stronger-than-expected second-quarter results, with revenue rising 19.6 per cent year-on-year to USD 200.6 billion, ahead of Street estimates of USD 197 billion. Operating income increased 43.2 per cent year-on-year to USD 27.5 billion, while operating margin improved to 13.7 per cent. Earnings per share of USD 5.75 exceeded market expectations. AWS revenue accelerated 36.7% YoY, adding over USD4.6bn in Q2 to an annualised revenue run rate of more than USD169bn. Management highlighted a USD 496 billion backlog, which grew at a triple-digit rate year-on-year, while AI revenue and Amazon's in-house chip businesses, Graviton and Trainium, each crossed a USD 25 billion annual revenue run rate with triple-digit growth. AWS revenue grew to USD 42.2 billion, and its operating margin expanded to 39.4 per cent. For the current quarter, Amazon guided for net sales of USD 197-202 billion, implying year-on-year growth of 9-12 per cent, with operating income expected between USD 22.5 billion and USD 26.5 billion.