According to a report by HSBC dated October 12, 2026, Amazon Web Services (AWS) reported second-quarter revenue of $42.2 billion, a 37% year-over-year increase—the fastest growth rate in 18 quarters. AWS operating profit reached $16.6 billion, up 59.4% year-over-year. HSBC forecasts third-quarter revenue of $203.3 billion and operating profit of $27 billion, both exceeding the company’s guidance upper limit ($202 billion in revenue and $26.5 billion in operating profit). The company has exceeded its operating profit guidance upper limit for 15 consecutive quarters.
HSBC believes that market concerns regarding the sustainability of capital expenditures by hyperscale vendors and AI demand are misplaced, and maintains a Buy rating with a target price of $310, representing a 22% upside from the closing price on October 8. Growth acceleration at AWS, AI services ARR exceeding $20 billion, and in-house chip ARR surpassing $25 billion provide strong support.
HSBC: AWS Revenue Up 37% QoQ, Q3 Earnings Expected to Exceed Guidance
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Summary
HSBC reports in its latest daily market report that AWS Q2 revenue reached $42.2 billion, up 37% year-over-year—the fastest growth in 18 quarters. Operating profit rose to $16.6 billion, a 59.4% increase. The bank forecasts Q3 revenue of $203.3 billion and profit of $27 billion, both exceeding guidance. AWS has now exceeded profit targets for 15 consecutive quarters. HSBC maintains a buy rating with a $310 price target, citing AI service ARR exceeding $20 billion and in-house chip ARR exceeding $25 billion as key drivers. Traders monitoring altcoins to watch may find AWS’s momentum a useful benchmark.
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