Amazon is set to unveil its Q4 fiscal 2025 earnings report after the close of trading on Thursday, February 5. Analysts are optimistic, projecting robust growth across Amazon’s core business segments: cloud computing, advertising, and e-commerce. Here’s everything you need to know about what to expect for Amazon’s upcoming earnings release and its implications for investors.
Analyst Expectations for Q4 Earnings
Wall Street analysts forecast Amazon to report earnings per share (EPS) of $1.97 and revenue of $211.44 billion for the quarter. This reflects an impressive 12.6% growth in revenue compared to the same period last year. This performance follows Amazon’s streak of beating earnings estimates for the last eight consecutive quarters, while only missing revenue expectations once in the past two years.
Notably, analysts highlight Amazon Web Services (AWS) as the key revenue driver, expecting AWS capital expenditure to reach $344 billion by 2027 as the cloud computing segment continues to double its capacity.
What’s Driving Analyst Optimism?
Amazon’s performance in Q4 is supported by several growth factors:
- AWS Expansion: Analysts project AWS revenue could double by 2028, adding approximately $20 billion to Amazon’s cash flow.
- Partnerships in AI: Amazon’s collaboration with Anthropic, which raised its 2026 revenue forecast to at least $17 billion, solidifies its competitive edge in the artificial intelligence space.
- Evolving Advertising Strategies: Amazon continues to capture a significant share of the online advertising market, driving profitability in its e-commerce ecosystem.
Wall Street’s Take
Amazon has garnered 35 Buy ratings and one Hold from Wall Street analysts. The average price target of $298.53 suggests a 25.1% upside from its current stock price. UBS has raised its target to $311, citing AWS’s expansion potential. Similarly, Evercore ISI and Citizens JMP are bullish on Amazon, with price targets of $335 and $315, respectively.
Investor Focus Areas
As Amazon competes with major players like Microsoft Azure and Google Cloud in the cloud computing industry, investors will closely monitor:
- AWS Growth: Market share and capacity expansion in the cloud computing space.
- Capital Expenditures: Guidance on investments in AI and other cloud infrastructure technologies.
- Operating Margins: Insights into profitability across e-commerce, advertising, and AWS segments.
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Whether you’re a seasoned investor or simply keeping tabs on Amazon’s growth, Q4 2025 promises to deliver significant insights into the company’s future trajectory. Stay tuned for updates and market reactions after February 5.
