Amazon is among the handful of tech giants on deck to report earnings this week, and Wall Street is eager for updates amid the latest round of layoffs and the continued race for AI dominance.
Amazon’s stock performance has been volatile recently. It’s up just 4% in 2025, lagging the rest of the Magnificent Seven year-to-date and underperforming the cohort over the last five years.
Amazon continues to spend heavily on AI, specifically on data centers and infrastructure, but balancing growth with expectations has proven difficult. Earlier this year, the stock was also battling against expectations for tariffs to impact its e-commerce business, though overall, the sense on Wall Street is that the company isn’t leading the pack when it comes to AI.
The company is expected to report $177.7 billion of revenue and earnings per share of $1.57 for the quarter.
Here’s what analysts are going to be listening for on the call.
Bank of America
BofA analysts are confident that Amazon will reveal progress in several key areas, even as some doubts swirl around its AI strategy.
“Given healthy retail sales, strength in Online advertising, and July AWS layoffs, we see potential for operating income upside and are 4% above Street for GAAP operating profit at $20.4bn vs $19.7bn,” the analysts wrote.
“We believe Street expectations are for around 1-2% beat on US retail, AWS growth at 18-18.5% based on 3P data, and op. profit slightly above the high end of Amazon’s 3Q guidance range.”
The bank maintains a Buy rating on Amazon stock and a $272 price target, implying 21% upside from Wednesday’s price.
JPMorgan
JPMorgan analysts said that while they believe Amazon has done a good job executing on retail sales and margin expansion, they have some concerns regarding its positioning in the booming generative AI space.
“There is concern around AMZN’s GenAI positioning/strategy, relative gap to Azure/Google Cloud growth, & trajectory of 2H AWS growth pick-up,” they stated. “There is also concern around the impact of tariffs & changes to the de minimis exemption on demand & OI margins.”
Related stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
However, the analysts add that AWS growth acceleration will continue, and said that they expect AI supply chain gaps to ease, which they see as bullish for Amazon.
“[North] America margins should benefit from inbound regionalization & inventory placement, SD facility buildout, & automation/robotics,” they added.
JPMorgan maintains an overweight rating and a $265 price target on Amazon.
UBS
UBS analysts are feeling optimistic heading into the report, although they anticipate some “noise” around operating income due to the company’s recent $2.5 billion settlement with the FTC.
The investment bank recently raised its Amazon price target from $271 to $279, maintaining its Buy rating. While analysts noted that they are waiting to see investment proof points from AWS, they still see the area as a likely growth driver for Amazon, as they expect multiple headwinds to wane in the near future.
“Overall, we continue to see the potential for upside across Amazon’s business segments including e-commerce, cloud, advertising, and Kuiper / low earth orbit satellites,” analysts wrote in a recent earnings preview.
Wedbush Securities
Wedbush is highly bullish on Amazon heading into the call, maintaining a $280 price target, up from its previous target of $250 a share.
The firm’s analysts predict that it is poised for a breakout in 2026, and likely to shake off the volatility that has weighed on the stock recently. They expect Amazon to reach $99.6 billion in full year revenue, a 12.6% margin, and predict Q3 revenue of $20.1 billion.
“Heading into the print, we are most focused on AWS momentum and emerging AI monetization, rising operating margins supported by the mix shift to higher-margin revenue, capex requirements to
support infrastructure and AI investments, and persistent growth within the advertising business,” Wedbush analysts wrote in a preview note.
They also cited several immediate-term catalysts, including savings from automation and robotics progress, as well as the commercialization of Alexa’s new AI capabilities.