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- KeyBanc and Goldman Sachs both raised AMZN price targets to $335; BofA projects Q2 revenue of $198.8B, above the $196.7B consensus.
- AWS is forecast to grow 31–33% year-over-year in Q2, its fastest pace since 2024, driven by AI workloads and Bedrock adoption.
- Wall Street's average Amazon price target sits 34% above the stock's current trading price near $247, with 92–98% of covering analysts at Buy.
Multiple Wall Street firms raised Amazon price targets ahead of July 30 earnings, citing accelerating AWS cloud and AI demand as catalysts for e-commerce growth 2026.
Lead
Amazon.com (AMZN) enters its July 30 second-quarter earnings report with Wall Street's average AMZN stock price target approximately 34% above the share price near $247, after a cluster of major brokerages raised forecasts this week on expectations that Amazon Web Services and the company's artificial intelligence infrastructure will push results above Street estimates. The wave of upgrades, arriving four days before the print, represents one of the more concentrated pre-earnings target revisions the stock has seen in recent quarters.What Happened
KeyBanc Capital Markets raised its price target from $325 to $335, revising its AWS growth estimate to 31% year-over-year for both 2026 and 2027. Goldman Sachs matched that target at $335, forecasting AWS expansion of roughly 33% this year accelerating toward 35% in 2027. Bank of America raised its AWS growth projection to 33% year-over-year and now models second-quarter revenue of $198.8 billion and operating income of $24.1 billion — both ahead of the consensus of $196.7 billion in sales and $23.6 billion in operating profit. Stifel separately lifted its target to $319.
The Street's consensus for the quarter calls for earnings per share of $1.82, up from $1.68 a year ago, on revenue representing 17.3% year-over-year growth. Amazon itself guided for a Q2 revenue range of $194 billion to $199 billion, implying results near the upper boundary would likely prompt a further round of estimate revisions.
Strategic Context
The revisions are grounded in first-quarter data that reset expectations. AWS posted $37.6 billion in revenue in Q1 2026, a 28% year-over-year gain and the division's fastest growth rate in 15 consecutive quarters. Amazon Bedrock, the company's managed AI platform, processed more tokens in Q1 2026 than in all prior quarters combined, with quarter-over-quarter enterprise spending on the service growing 170%.
Advertising has emerged as a second growth engine reinforcing the bull case in this Amazon earnings preview. Advertising services revenue reached $17.24 billion in Q1 2026, up 24% year-over-year, surpassing analyst estimates of 21.2% growth. If current trends hold, the segment is on track to generate more than $80 billion for the full year. E-commerce growth 2026 continues to support the company's core retail segment. Amazon holds an estimated 37.8% share of U.S. e-commerce spending, and the first half of 2026 saw combined revenue of approximately $323 billion, with net profit rising 47% to $35.29 billion. BofA cited workloads from Anthropic and OpenAI-powered services running on Bedrock as a structural driver of AWS capacity demand heading into the second half.Market Reaction
Amazon stock has gained roughly 2% over the five sessions preceding the report, settling near $247 — still below its all-time high of $274. Pre-earnings Amazon stock news has been uniformly constructive, with no major analyst downgrades and the overall ratings distribution at 92–98% Buy-equivalent across covering firms.
AI and Technology Angle
Amazon's commitment to $200 billion in capital expenditure for 2026 — the majority directed toward AI infrastructure — underpins the forward-looking confidence embedded in the raised targets. AWS commands approximately 29–30% of global cloud infrastructure market share, ahead of Microsoft Azure at roughly 20% and Google Cloud at approximately 13%. Bedrock's acceleration suggests Amazon's AI platform strategy is converting into measurable enterprise revenue at scale, the central thesis behind the consensus price target expansion.
Outlook
Amazon reports Q2 2026 results after market close on July 30. The consensus setup is unambiguously bullish, with multiple firms modeling revenue near or above the top of Amazon's guidance range and operating income comfortably above $24 billion. The central variable — whether AWS can sustain or exceed its Q1 2026 growth rate — has been answered affirmatively by a broad majority of Street analysts. A print near the high end of guidance would likely extend the current cycle of AMZN stock price target increases into the post-earnings session.