Amazon reports tonight: what the market expects from AWS
In short
- Amazon reports tonight after the US market closes. Revenue is expected near $202.2bn (+12%) and earnings per share near $1.96.
- All eyes are on AWS: the cloud unit grew 37% to $42.23bn last quarter, and its backlog is about $496bn.
- Options imply a move of about 7.4% in either direction. Planned capital spending for the year is about $220bn.
Amazon reports tonight, and the market will focus on AWS growth and how much more it will spend on AI. Yesterday Alphabet fell about 10% after its report while Microsoft rose about 4%. See what happened there.
What happened
Amazon publishes its third-quarter results on Thursday after the US market closes. According to 24/7 Wall St, analysts expect revenue of about $202.2bn, up 12.2% from $180.17bn a year earlier, and earnings per share of about $1.96 against $1.95. The company itself guided to revenue of $197bn to $202bn and operating income of $22.5bn to $26.5bn.
AWS, the cloud unit, is the most closely watched line. In the second quarter it grew 37% to $42.23bn, its fastest pace in 18 quarters, and its backlog is about $496bn. Pepperstone expects growth of around 35% for the third quarter; other analysts’ estimates differ.
The second issue is spending. Amazon raised its 2026 capital spending plan to about $220bn from about $200bn, and long-term debt is $128.9bn. Pepperstone also notes that earnings can swing with the company’s Anthropic investment, carried at $190.4bn at 30 June. Options imply a move in the share price of about 7.4% in either direction. At the last close the share price was $254.60, according to HawkValue data.
What it means for you
The maths: an Amazon share costs $254.60, about £191.61. A move of 7.4% is about £14.18 per share, or roughly £74 on every £1,000 held, up or down. See live prices on the UK stock market page.
Bottom line
Amazon reports tonight with revenue expected near $202.2bn and earnings of about $1.96 per share. Attention is on AWS growth and about $220bn of planned capital spending this year. Options price in a move of about 7.4% in either direction.
Sources: Pepperstone · 24/7 Wall St · Motley Fool
For information only. This is not investment advice.
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