Analysts expect AWS revenue of $40.54 billion and total sales of $196.47 billion as AI-driven spending concerns weigh on hyperscalers.
Amazon reports second-quarter earnings after markets close Thursday, with Wall Street forecasting earnings per share of $1.82 on revenue of $196.47 billion. Cloud unit AWS is projected to generate $40.54 billion, while advertising revenue is seen at $19.43 billion.
Capital expenditures remain a key focus amid rising AI investment costs. Amazon’s Q1 capex surged 77% year-over-year to $44.2 billion, with Q2 estimates at $49.3 billion. The company has maintained its 2026 capex guidance near $200 billion, though analysts anticipate a potential upward revision following Alphabet’s recent increase to $205 billion.
Shares of hyperscalers have reacted sharply to capex disclosures. Microsoft rallied 15% after reaffirming its 2026 spending plans, while Meta fell 9% on weaker revenue guidance tied to AI investments.