Wall Street eagerly awaits bullish AI updates from Amazon heading into its latest earnings

• Amazon's Q4 earnings report is coming on Wednesday, and Wall Street is feeling upbeat.
• The stock has lagged the Mag 7 in the last year, but analysts see predict a strong report.
• Top banks are eyeing AWS growth and AI updates as key highlights.

Amazon will be the latest Magnificent Seven company to report earnings this week, with the e-commerce giant's results due on Wednesday after the closing bell.

As analysts noted in their pre-earnings takes, Amazon has lagged behind most of its mega-cap tech peers for much of the past year. Yet, despite the lackluster performance, many investment banks are optimistic that the company will reveal fresh growth from Amazon Web Services (AWS) and provide key AI updates.

Wall Street expects Amazon tp post earnings-per-share of $1.96 for the quarter and revenue of $211.2 billion to $211.56 billion. Analysts anticipate that Amazon's earnings before interest and taxes will be $24.6 billion.

Here's what analysts say they will be listening for on Amazon's earnings call.

Bank of America: AWS growth to accelerate

BofA analyst Justin Post expects Amazon to come in slightly above Wall Street estimates on key metrics, predicting revenue of $213 billion and EBIT of $26 billion. He also thinks that AWS growth will accelerate in 2026, helping Amazon regain some momentum.

"We expect 22% y/y AWS growth (above Street at 21% and an accel from 20% in 3Q) as greater capacity drives incremental sales, and we think investors could also be around 22% y/y," he said.

JPMorgan: Greater AI contributions to AWS strength

While JPMorgan analysts remain bullish on Amazon heading into earnings, they do note some concerns regarding Amazon's position and strategy when it comes to AI. They find the recent AWS price increases encouraging, though, as they indicate strong demand.

"We remain bullish on AWS growth acceleration driven by core cloud growth & ramping AI contribution led by Project Rainier, Trn ramp, & new partnerships," they wrote.

The analysts added, though, that despite some concern, AWS' growth and the company's cost discipline should support strong free cash flow growth in the coming year, even as Amazon ramps up AI capex.

Deutsche Bank: Amazon could be a top performer in 2026

Deutsche Bank analysts aren't expecting Amazon's Q4 earnings report to quickly juice the stock's performance, but they do anticipate a positive quarter overall, particularly in e-commerce demand and AWS-driven revenue growth.

"While we don't expect 4Q earnings to be the magic bullet that changes these fortunes, we do expect another positive earnings outcome to continue to chip away at this underperformance and believe Amazon can be one of the largest outperformers in our coverage in 2026," stated analyst Lee Horowitz.

UBS: Capex to keep growing

UBS analyst Stephen Ju and his team increased their estimates for both AWS growth and Amazon's capex, citing the company's plans to double capacity by 2027.

"As 4Q25 results marks the second quarter of AWS acceleration, we expect investor conviction to continue to rise and drive outperformance as capital continues to rotate into AMZN shares," Ju stated in a note to investors.

He added that his team expects Amazon to benefit from its investments in areas such as gross merchandise volume, advertising, and data, which are expected to help increase its free cash flow.

Mizuho Securities: Benefits eyed from AI and e-commerce

Amazon remains a top pick for Mizuho, who sees it as a winner of the online advertising boom. Analyst Lloyd Walmsley also thinks it stands to benefit from ongoing demand both for its AI services and its e-commerce business.

"As GenAI compute demand increasingly shifts to inference this plays to Amazon's strength and should help further boost revenues at AWS," he noted. "On retail, we see ongoing cost-to-serve improvements from more automation in fulfillment centers and continued improvement in logistics architecture, aided by rapid growth in advertising driving improving retail margins."