-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
AMZN delivered strong Q1 2026 results with revenue of $181.6B beating the $177.2B consensus and operating income of $23.9B significantly exceeding the $20.7B consensus. Growth accelerated across all segments, with AWS leading at 28% (vs. 24% in Q4 2025), marking the fastest pace in 15 quarters (due to robust AI workload adoption). AWS margins expanded to 37.7% from 35.0% in Q4 2025 despite elevated capex, with AMZN's custom silicon business now exceeding $20B annual run rate with triple-digit growth and major commitments from OpenAI and Anthropic providing strong visibility. Management guided Q2 revenue to $194B-$199B, well above $188.9B consensus. We believe the results demonstrate successful monetization of AI infrastructure investments, with retail showing robust momentum including 15% unit growth and continued same-day delivery expansion. Free cash flow turned negative at -$17.2B due to $43B net capex, reflecting deliberate trade-offs for long-term AI positioning that should begin monetizing in 2027-2028.