Fitch Ratings on Friday assigned an 'AA-' credit rating to Amazon.com, Inc.'s proposed U.S. dollar-denominated unsecured notes issuance. Proceeds from the planned debt sale are earmarked for general corporate purposes, including increased capital expenditures and targeted strategic investments. In the same action, Fitch affirmed Amazon's Long-Term Issuer Default Rating at 'AA' and maintained a Stable Rating Outlook.
The agency justified the decision by pointing to Amazon's leading roles in global e-commerce and cloud computing, close customer ties across its platforms and the company's substantial scale. Fitch highlighted Amazon's EBITDA of $162 billion in 2025 as evidence of robust profitability and scale that supports financial flexibility and an ability to continue investing while keeping EBITDAR leverage comfortably below 2.5x.
Fitch also identified areas of risk. The rating agency noted uncertainty about Amazon's long-term strategic path and referenced ongoing regulatory activity related to the company's market share and business practices as potential constraints on strategy and operations.
Growth, margins and forecasts
Amazon's top-line performance has been strong by the measures Fitch cited. The company's annual revenue recorded a compound annual growth rate of 13% over the past five years, while its high-margin Amazon Web Services business posted a 23% CAGR. EBITDA expanded from $48 billion in 2020 to $162 billion in 2025.
Looking ahead, Fitch expects revenue growth of about 13% in 2026 and roughly 10% in subsequent years. The agency forecasts EBITDA growth in the mid-to-high-teens as Amazon continues to grow AWS and build AI capabilities. Fitch reported an EBITDAR leverage ratio of 0.9x in 2025 and projects it will remain well under 2x.
Capex plans and cashflow implications
Amazon intends to sharply increase capital expenditures to $200 billion in 2026 from $132 billion in 2025. Fitch indicated much of the increase is aimed at supporting rapid AI growth within AWS. The company disclosed a strategic partnership with OpenAI announced in February that includes an investment commitment of up to $50 billion. In April, Amazon disclosed a $5 billion investment in Anthropic, with the potential for up to an additional $20 billion in the future, on top of $8 billion previously invested.
Fitch cautioned that the significant rise in capex could produce negative free cash flow of around $40 billion annually in both 2026 and 2027.
Balance sheet and liquidity
As of March 31, 2026, Amazon reported $101.8 billion in cash and cash equivalents and $41.3 billion in marketable securities. The company had approximately $121.8 billion of unsecured notes outstanding at that date, up from $68 billion as of Dec. 31, 2025. Additionally, on June 8, 2026, Amazon entered into a three-year, $17.5 billion senior unsecured Delayed Draw Term Loan facility.