Here’s what Wall Street is saying about Amazon ahead of earnings

Amazon (AMZN) is scheduled to report results for its second quarter of 2025 after the market close on Thursday, July 31, with a conference call scheduled for 5:00 pm ET. Here’s what to watch for:

EXPECTATIONS: During the company’s last earnings call, Amazon said it saw Q2 revenue $159B-$164B, or to grow between 7% and 11% compared with the second quarter 2024. “This guidance anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates,” the company stated. Operating income is expected to be between $13.0B and $17.5B, compared with $14.7B in the second quarter 2024. “This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded,” the company added.

Current consensus EPS and revenue forecasts for Amazon’s second quarter stand at $1.33 and $162.11B, respectively, according to data from Yahoo Finance. The consensus EPS and revenue forecasts for Amazon’s full year 2025 stand at $6.26 and $696.44B, respectively.

CONSTRUCTIVE ON SETUP: Wedbush analyst Scott Devitt raised the firm’s price target on Amazon.com to $250 from $235 and keeps an Outperform rating on the shares ahead of quarterly results. The firm is constructive on the setup ahead of the report given encouraging U.S. retail data, healthy advertiser sentiment, strong AWS demand, and continued efficiency gains across the business that should drive upside to margin expectations. Investor sentiment is broadly positive, with expectations improving in recent weeks following a disappointing Q2 guide that was delivered in early May. Still, profitability forecasts for the year remain depressed as investors weigh the impact of tariff/macro uncertainty, currency risk, rising expenses to support AI initiatives, and an uncertain cost trajectory associated with Project Kuiper, Wedbush adds. The firm thinks the risk/reward is attractive, and it sees an opportunity for Amazon to deliver upside to current operating income expectations.

BETTER Q2 THAN EXPECTED: Stifel analyst Mark Kelley raised the firm’s price target on Amazon.com to $262 from $245 and keeps a Buy rating on the shares. Heading into Q2 earnings season for the firm’s e-commerce and consumer app coverage, the analyst notes that third-party data suggests a better Q2 than expected as the Trump administration has either struck more favorable deals or pushed out tariff implementation while waiting for deals. The firm was “too conservative in our models following liberation day” and raises some estimates among the group, the analyst tells investors in a preview.

ANTHROPIC CONTRIBUTION: Wells Fargo raised the firm’s price target on Amazon.com to $245 from $238 and keeps an Equal Weight rating on the shares. The firm estimates Anthropic should contribute approximately 1pt of additional growth to AWS revenues in the second half of the year vs. first half, +2.4% vs. +1.3%, supporting case for second half of 2025 acceleration critical to stock outperformance, in its view. Wells sees 2026 contribution from Anthropic increasing to +3.1%, reinforcing the case for second half of the year growth to continue throughout 2026 as Anthropic inference revenue scales. Further, the firm sees inference as driving over 75% of Anthropic revenues contribution in 2026, and sees total AI revenue contribution to AWS scaling to 10% in 2026 from less than 3% in 2024.

Last week, BofA analyst Justin Post raised the firm’s price target on Amazon.com to $265 from $248 and keeps a Buy rating on the shares. The firm, which slightly raised estimates ahead of the company’s Q2 report due on Thursday July 31 to account for strong Q2 retail data, foreign exchange and Anthropic AI growth, notes that its revised $164B Q2 revenue estimate is above the Street at $162B. The firm estimates Q2 profit at $17.8B, which it notes is above the high end of the company’s guidance range at $17.5B and tops the Street view of $17.0B.

PRIME DAY: Amazon announced that “Prime Day 2025 was its biggest Prime Day event ever and that customers saved billions on deals across more than 35 product categories, more savings than any previous Prime Day event,” the company said. This year’s Prime Day event was bigger than any previous four-day period that included a Prime Day event, with record sales and more items sold during the four days. “This year’s extended Prime Day event delivered incredible savings to our members across millions of deals,” said Doug Herrington, CEO of Amazon Worldwide Stores. “We’re thrilled to see record savings for our customers, who found great prices on the everyday essentials and products they love. This event wouldn’t be possible without the dedication of our employees, delivery partners, vendors, and sellers who worked tirelessly to serve our customers. Their efforts made this our biggest Prime Day yet, and I’m grateful for their contributions.”

AI DEAL: Amazon will pay New York Times (NYT) $20M-$25M a year to license a broad range of content, The Wall Street Journal’s Alexandra Bruell reports. The annual payment amounts to nearly 1% of the Times’ total 2024 revenue, Bruell writes. The companies announced their AI-related licensing deal in May, giving Amazon access to content from the Times’s news and cooking products, along with its sports property, the Athletic, and Amazon can use the material to train AI models and feature summaries and short excerpts of Times content in its products and services, including Alexa.

SENTIMENT: Check out recent Media Buzz Sentiment on Amazon as measured by TipRanks.