Amazon's AWS Growth Could Top Expectations, Analyst Says
Amazon.com (NASDAQ: AMZN ) is well positioned heading into its second-quarter results, according to Bank of America, which raised its estimates for the e-commerce and cloud giant on expectations of stronger Amazon Web Services (AWS) growth fueled by artificial intelligence demand. Amazon Earnings: What Wall Street Will Be Watching The brokerage reiterated its Buy rating and $310 price forecast, citing improving AI positioning, accelerating AWS growth and continued momentum in generative AI services as potential catalysts for the stock in the second half of 2026. Bank of America now expects Amazon to report second-quarter revenue of $198.8 billion and operating income of $24.1 billion, above Wall Street consensus estimates of $196.8 billion and $23.6 billion, respectively. The firm also raised its AWS revenue growth forecast to 33% year over year, up from its prior estimate of 31%, dri...
com (NASDAQ: AMZN ) is well positioned heading into its second-quarter results, according to Bank of America, which raised its estimates for the e-commerce and cloud giant on expectations of stronger Amazon Web Services (AWS) growth fueled by artificial intelligence demand. Amazon Earnings: What Wall Street Will Be Watching The brokerage reiterated its Buy rating and $310 price forecast, citing improving AI positioning, accelerating AWS growth and continued momentum in generative AI services as potential catalysts for the stock in the second half of 2026. 6 billion, respectively.
The firm also raised its AWS revenue growth forecast to 33% year over year, up from its prior estimate of 31%, driven by growing demand from Anthropic, OpenAI-powered Bedrock services and broader enterprise AI adoption. 5 billion, roughly bracketing Street expectations. They noted that an earlier-than-usual Prime Day will likely create a headwind for third-quarter retail comparisons after shifting some sales into the second quarter. The firm said investors should focus less on headline earnings and more on AWS growth, cloud margins, AI backlog expansion and commentary around capital spending.
Bank of America believes Amazon’s cloud business continues to strengthen relative to competitors, supported by Bedrock adoption, Trainium chips and growing AI workloads. AI Spending And Anthropic Partnership The brokerage also said Amazon could increase its 2026 capital expenditure outlook to about $210 billion because of higher memory costs and additional AI infrastructure investment. While that could weigh on near-term sentiment, analysts said stronger cloud demand and improving AI monetization should outweigh those concerns over time. Bank of America added that Amazon’s expanding relationship with Anthropic could further boost results.
5 billion in sequential AWS revenue growth during the quarter, while Amazon’s stake in the AI startup could generate a significant mark-to-market gain. Wall Street Remains Bullish Ahead Of Earnings Amazon is scheduled to report second-quarter results on July 30. 68 a year earlier. 70 billion in the prior-year quarter.
6 times forward earnings. 10. Recent analyst actions include: Wells Fargo reiterated Overweight and raised its price forecast to $322 on July 21. KeyBanc maintained Overweight and increased its price forecast to $335 on July 16.
Wedbush reiterated Outperform with a $293 price forecast on July 16. 29% Large fund flows into or out of these ETFs can influence Amazon’s share price because of its significant portfolio weighting. 91 at the time of publication on Wednesday, according to Pro data. Photo via Shutterstock Read Also: SpaceX Explores 1-Gigawatt Texas Data Center to Expand AI Computing