Amazon is next up among the mega-cap tech titans to report earnings, and investors are looking for something to get excited about, as the stock has lagged its peers over the last 12 months.
In focus for Wall Street will be growth in the AWS cloud unit, which analysts believe will be a bright spot in the report. Similar to other AI-focused firms, they'll also be listening closely to any updates on AI-related capex and costs following the recent spate of layoffs across the firm.
The company will publish its results shortly after the 4 p.m. ET closing bell, with the analyst call scheduled for 5 p.m. ET.
Bank of America: AWS growth to accelerateAWS logo
Noah Berger/Getty Images for Amazon Web Services
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.
Wall Street expects Amazon to report revenue of $211.49 billion, EPS of $1.96
Fourth quarter
Net sales estimate $211.49 billion (Bloomberg Consensus)
Online stores net sales estimate $82.3 billion
Physical Stores net sales estimate $5.88 billion
Third-Party Seller Services net sales estimate $53.16 billion
Subscription Services net sales estimate $12.74 billion
AWS net sales estimate $34.88 billion
North America net sales estimate $127.21 billion
International net sales estimate $49.74 billion
Third-party seller services net sales excluding F/X estimate +11.2%
Subscription services net sales excluding F/X estimate +10.4%
Amazon Web Services net sales excluding F/X estimate +21%
EPS estimate $1.96
Operating income estimate $24.82 billion
Operating margin estimate 11.7%
North America operating margin estimate +8.51%
International operating margin estimate 4.27%
Fulfillment expense estimate $31.42 billion
Seller unit mix estimate 61.5%
FIRST QUARTER * Net sales estimate $175.54 billion * Operating income estimate $22.24 billion * Capital expenditure estimate $34.81 billion