Capex (+59% YoY) consumed nearly all operating cash flow — FCF collapsed 77% to $7.7B despite +12% revenue growth

AWS (+19.6%) is the engine. AWS added $21B in revenue at 35.4% op margin — more profit than NA + International combined.

FCF collapsed 77% to $7.7B as capex jumped from $83B to $132B. Capex/OCF ratio now 95%, vs 72% prior year.

Sustainability hinges on AWS holding above 18% growth while capex peaks in 2025. Watch for a $40–55B FCF rebuild in FY26.

Revenue Growth (YoY)

12.4%

▲ +140 bps vs FY23

$716.9B total · vs $638.0B prior

Operating Margin

11.2%

▲ +40 bps

+480 bps vs FY22 · margin inflection

Free Cash Flow

$7.7B

▼ –76.6% YoY

Down from $32.9B FY23 · capex-driven

Capex

$131.8B

▲ +58.8% YoY

18.4% of revenue, vs 9.2% in FY22

Capex has consumed almost all operating cash flow

Operating cash flow vs. capex vs. free cash flow ($B), FY22–FY24

Revenue trajectory

$B, three-year trend with YoY growth

Where growth is concentrated

Segment revenue, FY24 ($B), sorted by YoY%

AWSCloud infrastructure + AI services · 35.4% op margin

+19.6%

InternationalNon-North America retail + advertising

+13.3%

North AmericaOnline retail, Prime, devices, advertising

+10.0%

Insight: AWS contributes 18% of revenue but 57% of segment operating income. Reacceleration from +13% to +19.6% is the single most important data point in the deck.

Margin inflection is real — operating margin nearly doubled in two years

Operating, gross, and net margin %, FY22–FY24

BOTTOM LINE

Amazon is the most extreme version of the AI-capex story — capex went from $53B to $132B in two years. If AWS reaccelerates further AND capex peaks in 2025, FCF rebuilds toward $40–55B by FY26. If AWS slips below 15%, this becomes a structural cash strain.