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Amazon Second-Quarter Revenue to Exceed Expectations on AWS Upside Potential, BofA Says

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Amazon Second-Quarter Revenue to Exceed Expectations on AWS Upside Potential, BofA Says

Amazon.com's (AMZN) second-quarter revenue and core profitability will likely exceed Wall Street's expectations amid upside potential from Amazon Web Services, BofA Securities said Wednesday.

The brokerage raised the e-commerce giant's revenue estimate to $198.82 billion from $198.30 and moved its earnings before interest and taxes outlook to $24.15 billion from $23.93 billion. Both are ahead of the Street's estimates that BofA put at $196.8 billion and $23.6 billion, respectively.

Amazon is scheduled to report second-quarter results on July 30. Shares of the company were down 1.5% in Wednesday trade, but have gained 5.6% so far this year.

In April, Amazon said it expected second-quarter sales of $194 billion to $199 billion, representing year-over-year growth of 16% to 19%.

BofA raised AWS revenue growth estimate to 33% from 31% amid Anthropic-related revenue and Amazon Bedrock demand tied to OpenAI models. Anthropic is an AWS customer, while OpenAI makes its models available on Bedrock.

"We remain constructive on AWS's improving (artificial intelligence) positioning," BofA analyst Justin Post said.

Amazon could raise its full-year capital spending outlook to $210 billion as memory costs rise, Post said.

Amazon's third-quarter revenue guidance is expected to "bracket" Wall Street consensus, as a drag from Prime Day timing on North American retail sales is offset by international growth and cloud performance, according to the BofA note.

BofA raised its 2026 revenue and EPS estimates for Amazon to $830.66 billion and $15.81, respectively, from $828.56 billion and $8.98. The brokerage lifted Amazon's 2027 revenue forecast but trimmed EPS projections.

BofA reiterated its buy rating on Amazon's stock, with a price target of $310.

Price: $243.97, Change: $-3.58, Percent Change: -1.45%

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