Amazon.com Inc (NASDAQ:AMZN) could highlight its improvements in cloud and AI when the company reports first-quarter (Q1) financial results on Wednesday after market close.
Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.
Amazon.com Q1 Earnings Estimates
Analysts expect Amazon to report Q1 revenue of $177.31 billion. That’s up from $155.7 billion in last year's first quarter, according to data from Benzinga Pro.
The company beat analyst estimates for revenue in six straight quarters and in nine of the last 10 quarters overall.
Analysts expect Q1 earnings per share of $1.64, up from $1.59 in last year's first quarter.
The Seattle-based company beat analyst estimates for earnings per share in nine of the last 10 quarters. It missed in the most recently reported Q4.
Guidance from the company after Q4 results called for Q1 revenue to be in a range of $173.5 million to $178.5 million, up 11% to 15% year-over-year.
What Experts Are Saying
Freedom Capital Markets Chief Market Strategist Jay Woods says investors should watch the ecommerce and consumer trends in Amazon's reports that could provide a gauge of spending habits.
The expert also said, "AI monetization remains a priority" and "AWS growth remains strong," which are likely two of the top areas investors and analysts will be watching.
Woods highlights that Amazon stock has traded lower after four of the last five earnings reports, while breaking down the stock in a weekly newsletter.
"Despite solid revenue growth, investors focused on a slight EPS miss and a massive spike in AI-related spending," Woods said of the fourth quarter results.
Here are recent analyst ratings on Amazon stock and their price targets:
- Mizuho: Maintained Outperform rating, raised price target from $315 to $325
- Oppenheimer: Maintained Outperform rating, raised price target from $260 to $275
- UBS: Maintained Buy rating, raised price target from $301 to $304
- BMO Capital: Maintained Outperform rating, raised price target from $310 to $315
- Cantor Fitzgerald: Maintained Overweight rating, raised price target from $260 to $280
Key Items to Watch
AI and AWS will likely be the top stories when Amazon reports quarterly results. AWS revenue was up 24% year-over-year in the fourth quarter, marking the fastest growth for the segment in 13 quarters.
The company also highlighted its AWS custom chips hitting an annual revenue run rate of over $10 billion, with triple digit percentage year-over-year growth.
Amazon recently signed a deal with Anthropic that could impact the future AWS growth and could be a key topic on the conference call.
In recent quarters, Amazon has been increasing its CapEx as it builds out AI ambitions. The quarter could show if monetization from efforts is improving and if spending is increasing again or leveling off.
Entertainment isn't one of the company's main segments, but was highlighted in the fourth quarter results thanks to "Thursday Night Football" growth. The segment could have a hit and miss to talk about in the first quarter.
"Project Hail Mary" opened towards the end of the quarter and has been a box office hit. Meanwhile, the "Melania" documentary film grossed only $16.6 million worldwide against an upfront acquisition cost of $40 million and an additional $35 million in marketing.
The company could end up taking a loss on the film, even after streaming.
Amazon is one of several Magnificent Seven stocks reporting this week, raising volatility risk for tech and broader markets.
Amazon is the fourth-largest holding in the SPDR S&P 500 ETF Trust (NYSE:SPY) at 4.2% of assets. Sharp moves in Amazon and other Magnificent Seven stocks on Wednesday could drive volatility in the S&P 500.
In the price-weighted Dow Jones Industrial Average, Amazon is a smaller holding. In the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), Amazon is the 14th-largest holding at 3.3% of assets.
Price Action
Amazon stock is down 0.6% to $259.47 on Tuesday versus a 52-week trading range of $178.85 to $261.03. The share price is up 14.6% year-to-date in 2026; it’s up over 38% over the last 52 weeks.
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