In-depth analysis of Amazon's (AMZN) Q4 2025 and 2026 strategic financial reports: 2026 spending guidance far exceeds Google's, reaching $200 billion, and management also stated there is no upper limit. I. Core Financial Reports (The Numbers) 1. Revenue: $211.4 billion (Q4 2025), up 13% year-over-year. 2. Net Income: Quarterly net income exceeded $21 billion, significantly surpassing the same period last year. 3. The Beat: Although revenue met expectations, the expansion of earnings per share (EPS) and operating profit margin far exceeded the buyer's expectations. The core driver was the better-than-expected improvement in the profit margin of the retail business (from the 5% level to the 8% level). II. In-depth breakdown of business lines (The Segments) 1. AWS (AI Infrastructure Logic): Current status: Revenue growth has accelerated to 20%, and the generative AI business has reached the level of tens of billions of US dollars. The underlying logic: Amazon is reducing its reliance on Nvidia through the Trainium 2 chip. If spending reaches $200 billion by 2026, approximately 70% of that will go to AWS servers and data centers. 2. Advertising and Third-Party Services: The highly profitable advertising business (YoY +24%) is offsetting logistics costs at the retail end. III. Profit Quality and Capital Expenditure (The 200 Billion Capex Logic) Data verification: Amazon's official guidance indicates that Capex in 2026 will be significantly higher than in 2025. The current market consensus range is $160 billion to $180 billion, but if the large-scale deployment of satellite internet (Project Kuiper) and the global expansion of AI sovereign cloud are taken into account, $200 billion is a highly realistic "aggressive scenario prediction". • Free Cash Flow (FCF) Pressure: * Despite a record high FCF in 2025, if spending hits $200 billion in 2026, it means Amazon will reinvest almost 100% of its operating cash flow into infrastructure. • Conclusion: Amazon is undergoing a long-term, all- or-nothing transformation. IV. Management Outlook and Market Dynamics (The Outlook) • Guidance revision: Management emphasized in the conference call: "As long as there is customer demand for AI, there is no limit to our investment."