AWS revenue growth to meaningfully beat consensus, says TD Cowen

TD Cowen analyst John Blackledge increased the firm’s revenue estimates for Amazon.com’s (AMZN) Web Services unit through 2031, citing faster than expected generative AI growth. TD now estimates AWS revenue rises to $165B in 2026, up 28% year-over-year and 3% above consensus. It sees AWS revenue exiting 2026 growing in the low 30% range, with revenue for the unit of $222B in 2027, up 34% year-over-year and 11% above the consensus estimate. The firm also increased its capital expenditure estimates for Amazon. TD is now now meaningfully above consensus for Amazon’s capex in 2027 and 2028 as AWS doubles gigawatt capacity. AWS revenue growth will be “meaningfully higher” than current consensus estimates, driven by its tiered generative AI stack, the analyst tells investors in a research note. TD keeps a Buy rating on Amazon with a $300 price target

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