ALTA EDICIÓN / ANALYSIS · ENGLISH BRIEF
Amazon: sales grow. What happens to cash?
A public case for separating operating cash generation from investment needs.
The facts · twelve months to June 2026
Amazon reported revenue of US$775.680 billion, operating cash flow of US$161.403 billion and net purchases of property and equipment of US$169.007 billion. Free cash flow under its definition was −US$7.604 billion. The results were published July 30, 2026; these are trailing-twelve-month figures, not one quarter.
The definition matters
In a simplified educational model, free cash flow equals cash from operations minus investment spending. Amazon uses property and equipment purchases net of asset-sale proceeds and incentives. This is not net income, EBITDA or all cash freely available to shareholders.
What the numbers support
Operating cash flow increased, but investment spending increased more. The company mainly attributes the investment increase to AI. Spending does not yet demonstrate an adequate future return. Operating cash flow divided by revenue, about 20.8%, is not the percentage of invoices collected.
Limits and invalidating signals
Debt repayments, some lease payments, acquisitions, future commitments and stock-based dilution need separate examination. Review operating cash flow relative to sales, working capital, capacity utilisation, funding needs and investment at each quarterly release. Sustained deterioration in operating cash generation would weaken an explanation focused only on expansion spending.