Amazon's Q1 Earnings Preview: Can AI Investments Boost Confidence?

Amazon is set to report its first-quarter 2026 financial results on April 29. According to FactSet, the company's Q1 revenue is expected to reach $177.2 billion, a 13% year-over-year increase, with adjusted earnings per share projected at $1.63.

The growth is driven primarily by the accelerated expansion of AWS cloud services and sustained strong growth in the advertising business. Amazon announced its capital expenditure plan for 2026 will reach a record $200 billion, representing a nearly 60% increase from 2025.

However, this aggressive investment plan has sparked concerns among some investors, with doubts about whether such massive AI investment can yield short-term returns and anxieties over the return cycle of capital expenditures. The market is looking to this earnings report to bolster investor confidence.