Amazon.com is scheduled to release third-quarter financial results after markets close Thursday. Investors and analysts will focus most closely on AWS growth after the segment's recent record quarters. Benzinga Pro data show analysts forecasting third-quarter revenue of $202.28 billion, compared with $180.17 billion in the same quarter last year. Analysts forecast third-quarter earnings per share of $1.96, compared with $1.95 a year earlier.
Amazon has exceeded revenue forecasts for eight consecutive quarters and nine of the past 10 quarters. Amazon has surpassed earnings-per-share forecasts for two consecutive quarters and nine of the past 10 quarters.
Bank of America Securities analyst Justin Post expects AWS to drive upside in Amazon's third-quarter results. Post recently reaffirmed a Buy recommendation and a $320 price target. Post forecasts AWS margins of 39%, compared with the consensus estimate of 34.7%. Post is also monitoring Amazon's backlog, custom silicon and Bedrock. Post views increased holiday hiring and AWS growth as additional potential sources of upside.
UBS retained a Buy recommendation and increased Amazon's price target to $348 from $318. Morgan Stanley kept an Overweight recommendation and increased the price target to $350 from $335. Wells Fargo retained an Overweight recommendation but reduced the price target to $329 from $338. Cantor Fitzgerald kept an Overweight recommendation but reduced the price target to $310 from $320.
AWS recorded second-quarter revenue of $42.2 billion, representing a 37% increase from a year earlier. The growth rate was the highest AWS had achieved in 18 quarters. Amazon's North America segment grew 16% year over year. Amazon's International segment grew 15% year over year. Both segments grew substantially more slowly than AWS.
Investors will also closely monitor Amazon's AI and Chips segments. Amazon previously said each segment had a run rate exceeding $25 billion in the second quarter. Amazon's e-commerce business is approaching the holiday season. Amazon could provide an initial indication of expectations for the 2026 holidays amid higher gasoline prices and continuing macroeconomic uncertainty.
Amazon shares traded at $252.20 on Wednesday, down 0.4%. Amazon's 52-week trading range extends from $196.00 to $287.16. Amazon shares have gained 11.4% year to date. The shares remain about 12% below the all-time highs reached in August.
Amazon Q3 Earnings Preview: Focus on AWS Growth and Analyst Forecasts
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Summary
Amazon is set to report Q3 earnings after market close on Thursday, with analysts forecasting $202.28 billion in revenue and $1.96 per share. AWS, which saw 37% year-over-year growth in Q2, remains a key focus. On-chain news suggests continued momentum in cloud services. Bank of America’s Justin Post expects AWS to deliver a 39% margin. UBS and Morgan Stanley have raised price targets to $310–$350. Amazon’s e-commerce and AI + crypto news segments are also under investor watch ahead of the holidays.
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