Amazon.com (AMZN) is expected to report Q2 revenue and earnings before interest and taxes above Wall Street estimates, driven by AWS growth, while Q3 guidance is likely to bracket consensus due to Prime Day timing, BofA Securities said in a note Wednesday.
The investment firm raised its Q2 revenue and EBIT estimates to $198.8 billion and $24.1 billion, respectively, above consensus, and increased its AWS revenue growth estimate to 33% from 31% on stronger demand from Anthropic workloads and OpenAI models on Amazon Bedrock. The company is scheduled to report its Q2 financial results on July 30.
For Q3, BofA expects Amazon to forecast revenue at $200.5 billion to $205.5 billion and operating income range of $21.5 billion to $26.5 billion, with the outlook likely to bracket Street estimates due to the timing of Prime Day.
Amazon could raise its 2026 capital expenditure outlook to about $210 billion on higher memory costs, with investors expected to focus on AWS growth, cloud backlog, AI adoption and returns on AI investments, according to the note.
BofA maintained its buy rating on the stock, with a price target of $310.
Amazon.com shares were down 1.4% in Wednesday trading.
Price: $244.08, Change: $-3.47, Percent Change: -1.40%