Amazon Stock Eyes October 29 Earnings with AWS in Focus

Amazon.com stock is approaching a key test as it heads into its Q3 2026 earnings report on October 29, 2026. The company's shares closed at USD 251.40 on the Nasdaq on October 5, 2026, with investors closely watching whether Amazon can maintain its recent profit growth. The upcoming report will provide insights into the sustainability of the company's performance, particularly focusing on its cloud computing division, Amazon Web Services (AWS).

Amazon's Q2 2026 results set a high bar, with revenue of USD 200.61 billion, a 19.6 percent increase from the prior-year quarter. Diluted earnings per share reached USD 5.75, significantly beating the consensus estimate of USD 1.82. The strong performance was driven by AWS, which generated USD 42.23 billion in revenue and USD 16.62 billion in operating income during the quarter. This highlights the critical role of AWS in Amazon's overall profitability.

Analysts at TD Cowen have placed AWS at the center of the next earnings report, forecasting Q3 revenue of USD 202 billion and operating income of USD 27.6 billion. The firm anticipates AWS growth to accelerate to 41 percent in Q3, up from 37 percent in Q2. TD Cowen maintains a Buy rating and a USD 350.00 price target for Amazon, indicating strong confidence in the company's future performance.

The consensus among analysts remains bullish, with MarketBeat reporting a Moderate Buy consensus from 59 analysts, including 56 Buy ratings and three Holds. The average price target of USD 321.63 represents a 27.9 percent upside from the October 5 closing price. However, the company's expanding investments in artificial intelligence and data-center buildout could pose challenges to maintaining high levels of free cash flow.