“Within the North America segment, we do expect a year over year cost increase of approximately $1 billion related to Amazon LEO.”

In context

“rvices on behalf of customers. As we've long said, we expect AWS operating margins to fluctuate over time, driven in part by the level of investments we are making at any point in time. Turning to cash flows. Our full year operating cash flow increased to $139.5 billion in 2025. Up 20% year over year due primarily to improved operating income and changes in working capital. Now turning to our Q1 financial guidance. Q1 net sales are expected to be between $173.5 billion and $178.5 billion. This guidance anticipates a favorable impact of approximately 180 basis points from foreign exchange rates. As a reminder, currencies can fluctuate during the quarter. Q1 operating income is expected to be between $616.5 billion and $21.5 billion. A few things to mention on the operating income guidance. Within the North America segment, we do expect a year over year cost increase of approximately $1 billion related to Amazon LEO. We have more than 20 launches planned in 2026, and more than 30 in 2027 which means we are spending more on launching satellites each year. Select enterprise customers are testing Amazon LEO services now. And we expect a wider commercial rollout later this year. As a reminder, today, we do expense most of these LEO costs as incurred. We expect that later in the year, many of these costs, such as satellite manufacturing and launch services, will be capitalized. Within the international segment, we are continuing to invest more in our stores business to enhance the customer experience and to encourage retail demand to move online more quickly. This includes bringing faster delivery options including Amazon Now or service which delivers to customers in thirty minutes or less. We are also wor”