Amazon (AMZN), the e-commerce and cloud computing giant, is set to report its Q1 2026 earnings on April 29. Ahead of the release, top Mizuho analyst Lloyd Walmsley raised his price target for AMZN stock to Street-high $325 from $315 and maintained an Outperform rating. The new price target implies an upside potential of 25% from current levels. Let’s discuss his views in detail.
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Explore AMZO for 2X short leverage on AMZNFor context, Wall Street expects Amazon to report EPS of $1.63, up 2.5% year over year, while revenue is projected to grow about 14% to $177.27 billion.
Top Mizuho Analyst Turns More Bullish on AMZN
The 5-star analyst increased his estimates for Amazon following new disclosures around AWS growth, particularly in AI and custom chips. He pointed to rising demand for Trainium chips, higher CPU usage, and new cloud deals with OpenAI, Anthropic, and Meta Platforms (META) as key growth drivers. These factors are expected to support continued acceleration in AWS revenue.
On the retail side, Walmsley noted that U.S. non-store retail data suggests potential upside for North America e-commerce revenue.
Looking ahead, the analyst expects higher capital spending, projecting 2027 capex at $250 billion, along with slightly lower AWS margins. Despite this, his forecasts for operating income and EPS remain largely unchanged.
Nevertheless, the analyst flagged some near-term risk around operating income guidance versus consensus, but believes investors may look past it given the company’s long-term growth drivers.
Is Amazon Stock a Buy?
Heading into Q1 earnings, Wall Street has a Strong Buy consensus rating on Amazon stock based on 42 Buys and two Holds. The average AMZN stock price target of $289.05 indicates 9.4% upside potential.
