E-commerce and cloud computing giant Amazon (AMZN) is scheduled to announce its first-quarter results after the market closes on Wednesday, April 29. AMZN stock has risen over 32% in the past month, driven by accelerating growth in the company’s AWS (Amazon Web Services) cloud unit, a deal with Meta Platforms (META) to power agentic AI on AWS’ Graviton chips, and other strategic partnerships, including a new deal to invest up to $25 billion in Anthropic. According to TipRanks’ Options Tool, options traders expect a move of 1.55% in either direction in AMZN stock in reaction to Q1 2026 earnings.
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Forget margin or options. Here's how the pros trade AMZNThis implied move is lower than Amazon stock’s average post-earnings move (in absolute terms) of 5.88% over the past four quarters.
Meanwhile, Wall Street expects Amazon to report EPS (earnings per share) of $1.63, reflecting 2.5% year-over-year growth. Revenue is projected to rise about 14% to $177.27 billion.
Investors will look forward to management’s updates on AWS momentum, the demand backdrop in the retail and advertising businesses, and the impact of the recent deals.
Analysts’ Views Ahead of Amazon’s Q1 Earnings
Heading into Q1 results, UBS analyst Stephen Ju reaffirmed a Buy rating on Amazon stock and raised his price target to $304 from $301 as he updated his valuation assumptions by one quarter and increased his 2027 AWS revenue and capital expenditure estimates. The 5-star analyst made these revisions considering the additional investments and deals the tech giant signed with OpenAI and Anthropic, which are estimated to add about $200 billion to the backlog.
Ju highlighted that his expectations differ most from the Street’s on 2026 AWS growth. Notably, the analyst expects 38% AWS growth in 2026, well above the Street’s forecast of 26%, which then compounds into 2027. As a result, Ju’s 2027 operating income estimate is about 39% higher than the consensus. The analyst continues to believe that the Street’s consensus will move toward his expectations. While shares have strongly rebounded year-to-date, Ju sees further upside as even on a GAAP P/E (price-to-earnings) basis, the stock is trading at 19x his 2027 estimate. Ju doesn’t believe that a premium asset such as Amazon should be trading at a discount to the market multiple.
Meanwhile, Evercore analyst Mark Mahaney reaffirmed a Buy rating on Amazon stock with a price target of $285. The 5-star analyst expects Amazon to surpass Q1 revenue and EPS estimates, but Q2 guidance to be mixed. Specifically, he expects Q2 2026 revenue to meet consensus but meet or fall short of operating income expectations. He views the Street’s Q1 revenue estimate of $177 billion and operating income forecast of $20.8 billion as “highly reasonable” based on Evercore’s intra-quarter datapoints and model sensitivity analysis.
Furthermore, Mahaney highlighted favorable macro retail data, strong trends observed by research firm Second Measure regarding Amazon’s sales, and positive channel checks across the company’s cloud business and advertising.
AI Analyst Is Bullish on AMZN Stock
Interestingly, TipRanks’ AI Analyst has an Outperform rating on Amazon stock with a price target of $267, indicating 1.14% upside potential. The AI Analyst’s bullish stance is based on improving profitability and scale as well as favorable earnings-call insights (re-accelerating AWS growth, strong backlog, and ad strength. However, the AI Analyst cautioned about volatile free cash flow amid massive reinvestment, technically overbought conditions, and a premium valuation that reduces margin for error.
What Is the Price Target for AMZN Stock?
Currently, Wall Street has a Strong Buy consensus rating on Amazon stock based on 40 Buys and three Holds. The average AMZN stock price target of $287.33 indicates about 9% upside potential.
