Amazon will reveal its Q2 2026 earnings on July 30 after the market closes. Trading near $231, the stock draws attention as analysts weigh growth prospects ahead of the report.
Evercore ISI remains bullish, maintaining an Outperform rating with a $315 price target. The firm expects Amazon to hit the consensus revenue estimate of $196 billion, marking a 17% increase from last year and a 9% jump from the previous quarter. Over the past year, Amazon’s revenue climbed 14%, reaching $743 billion.
Prime Day’s timing this year shifted to Q2, potentially adding $5 to $10 billion in extra revenue. This event’s move led Evercore ISI to lower its Q3 revenue forecast by 7% to $194 billion, below the Street’s $204 billion estimate. Operating income expectations for Q3 also dropped slightly to $24.2 billion.
Focus on AWS and Capital Spending
Amazon Web Services remains the key segment to watch. Investors will scrutinize AWS’s revenue growth, margin performance, and updates on capacity and backlog. Despite strong top-line growth, AWS margins may face pressure due to high depreciation costs from expanding infrastructure. also Amazon’s ongoing investment in Project Leo, a satellite connectivity venture, has been a drag on margins since Q1.
Capital expenditure is another key element. Amazon aims to spend $200 billion in 2026, but it typically provides guidance only one quarter at a time. Market participants will look for clues on whether the company is on track to meet that ambitious target.
Morningstar assigns Amazon a four-star rating with a fair value of $280, suggesting the stock is moderately undervalued at current levels.
This content is for informational purposes and does not constitute financial advice.
