Highlights

  • Amazon plans a new Indiana manufacturing facility to supply equipment for its North American fulfilment and robotics operations.
  • An expanded cloud collaboration targets two million additional graphics processors across the global AWS network during 2027–2028.
  • Second-quarter sales increased 20% YoY to USD 200.6bn, while operating income rose to USD 27.5bn across the group.
  • Investment in computing infrastructure has increased cash requirements, with trailing twelve-month free cash flow moving into an outflow.

Investment in cloud capacity and physical fulfilment equipment is advancing on separate tracks at Amazon.com (NASDAQ:AMZN), which operates online stores, logistics services and cloud infrastructure. A September manufacturing announcement follows an August agreement to expand AI computing capacity, while the latest reported earnings show higher sales and operating profit. Shares closed at USD 249.09, up 0.44%, after the market session ended on 26 October 2026.

Manufacturing Facility Supports the Logistics Network

On 24 September, Amazon announced plans to invest more than USD 100mn in a 585,000-square-foot manufacturing facility in Greenwood, Indiana. The site is expected to create 300 manufacturing and engineering roles and begin operating by 2028. Its products will support fulfilment and robotics facilities across North America.

The planned operation combines fabrication, robotic welding, powder coating and assembly, supported by cloud and AI manufacturing systems. The company has manufactured more than one million robots in the United States, with robots deployed across over 300 facilities globally. The new factory extends the domestic production base for that operating network, but its announced 2028 launch means the facility is not yet contributing current manufacturing output.

AWS Plans Additional Computing Capacity

An August expansion of the company's computing collaboration calls for two million additional graphics processors across AWS infrastructure in 2027–2028. The deployment programme includes multiple accelerator generations and work on networking, central processors, software and physical AI applications.

The collaboration also covers AI factories for the United States government and integration with AWS security and networking systems. In robotics, planned work spans simulation, synthetic data, training and route optimisation. These announcements connect the cloud and logistics businesses through shared computing requirements, while retaining different deployment schedules. The processor total is a planned future addition, rather than a measure of equipment already installed across the AWS network or revenue already recognised from customers.

Higher Operating Profit Accompanies Cash Investment

Net sales increased 20% YoY to USD 200.6bn in 2QFY26. AWS sales rose 37% to USD 42.2bn, while North America and International sales increased 16% and 15%, respectively. Group operating income was USD 27.5bn, compared with USD 19.2bn a year earlier.

Net income reached USD 62.6bn, including substantial non-operating investment gains, so it was materially different from operating profit. Operating cash flow for the trailing twelve months was USD 161.4bn, but free cash flow was negative USD 7.6bn as property and equipment purchases increased. Management's prior third-quarter outlook called for operating income of USD 22.5bn–26.5bn. The guidance remains separate from the longer-term equipment deployment and manufacturing commitments, which extend beyond the current financial year.