Analysts set a 33% upside for AMZN as AWS revenue growth hits an 18-quarter high of 36.7% in Q2.
Amazon’s stock received a $344 price target, reflecting 33% upside from its current $259.39, driven by AWS revenue growth accelerating to 36.7% in Q2 FY2026. The company reported $200.61 billion in revenue, up 19.62% year over year, with operating income rising 43.24% to $27.46 billion.
AWS backlog swelled to $496 billion, while operating margins reached 39.4%. CEO Andy Jassy projected AWS could become a $1 trillion annual revenue business, outpacing cloud rivals Alphabet and Microsoft. AMZN trades at a forward P/E of 17, below Microsoft’s 24.
Shares are up 12.69% year to date but dipped 1.89% in the past week despite strong fundamentals. Analysts cite AI monetization and operating leverage as key catalysts for further gains.