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Amazon Earnings Preview: Cloud and Ads to Drive Double-Digit Growth
28 Jul
Summary
- Wall Street projects $162 billion in Q2 2025 revenue, up 9.5% year-over-year
- Operating income estimated at $16.7 billion, a 13.8% increase driven by AWS and ads
- Analysts bullish on Amazon, citing cloud AI momentum and Project Kuiper's promise
Amazon is scheduled to release its Q2 2025 earnings report on July 31, 2025, following the closing bell. Wall Street analysts project the company will report around $162 billion in revenue, a 9.5% increase from the same period a year earlier. This figure sits near the top of Amazon's own forecast of $159-164 billion.
Operating income is estimated to reach $16.7 billion, a 13.8% lift that is largely driven by the continued growth of Amazon's AWS cloud unit and its advertising division. Adjusted earnings per share are expected to rise 8% to $1.32.
Ahead of the report, analysts have grown more bullish on Amazon. Morgan Stanley has elevated the company to its premier internet stock, highlighting the momentum of AWS's AI capabilities. Baird's Colin Sebastian has kept his Outperform rating on the stock, raising his price target to $244 due to the promise of Project Kuiper, Amazon's satellite internet initiative. Bank of America has also nudged its price objective higher to $265, reaffirming a Buy rating.
Despite ongoing macroeconomic uncertainty, Amazon is expected to continue experiencing robust mid-single-digit earnings growth over 2026. This growth is anticipated to be driven by continued cloud adoption, particularly in the realm of AI, as well as stronger advertising sales.
