- Amazon will report its second-quarter results later today, with its stock recently affected by concerns regarding AI spending.
- Analysts polled by FactSet predict that AWS sales will increase by 31.3% to $40.54 billion.
- For the overall Q2 report, analysts expect earnings growth of 8% to $1.82 per share and revenue growth of 17.5% to $197 billion.
- Amazon's capital expenditures are projected to reach $200 billion for the year 2026, with some analysts suggesting this could increase due to rising demand for artificial intelligence.
- Amazon's capital expenditures in the first quarter rose by 77% from the previous year, with expectations for the second quarter to reach $49.3 billion.
- AWS revenue is anticipated to grow by about 31% year-over-year, marking its fastest expansion in over three years.
Amazon's second-quarter earnings report is set to highlight significant growth in its cloud division, with AWS revenue expected to reach $40.54 billion, reflecting a 31.3% increase year-over-year. Analysts predict that the company's overall earnings will grow by 8% to $1.82 per share and revenue by 17.5% to $197 billion.1237
The anticipated growth in AWS comes as Amazon's capital expenditures are projected to hit $200 billion by 2026, with some analysts suggesting that this figure could rise due to increasing demand for artificial intelligence services. Amazon's capital expenditures reached $49.3 billion in the second quarter, up 77% from a year ago, and are expected to continue climbing, with estimates suggesting a total of $218 billion this year and potentially $318 billion by 2028.456
Despite recent stock fluctuations, Amazon's shares gained over 4% to $237.32 in late morning trades, buoyed by positive results from Microsoft. The company will host a conference call with investors at 5 p.m. ET to discuss the Q2 results, which will also reflect the success of its annual Prime Day event, where U.S. online spending grew 9.3% year-over-year according to Adobe.
Analysts remain optimistic, with Bernstein noting that investors are looking for AWS sales growth at or above the mid-30s percentage range, while Mizuho analysts have indicated that buy-side estimates for AWS revenue growth have also reached similar levels.
“Analysts forecast Amazon's overall Q2 earnings growth at 8% to $1.82 per share, with revenue expected to hit $197 billion. Additionally, AWS revenue is projected to rise about 31% year over year, reflecting strong demand and competition in the cloud market.”
CNBC
