Amazon's Q2 Results Send Shares Soaring, Analysts Predict $341.77 Target

Amazon's recent Q2 fiscal 2026 results have investors optimistic about the company's future. The tech giant reported revenue of $200.6 billion, up 19.62%, with operating income increasing by 43% to $27.46 billion. AWS growth accelerated to 37%, its fastest pace in 18 quarters, and advertising climbed 26% to $19.8 billion.

CEO Andy Jassy believes AWS can become a 'trillion dollar annual revenue business' over time, citing the company's AI backlog of $496 billion, which is growing triple digits year-over-year. The AWS backlog is a significant factor in Amazon's growth prospects, and analysts expect it to continue driving the company's expansion.

However, not all investors are convinced. Some concerns include Amazon's high capex intensity, with the company spending $54.2 billion in a single quarter, up 68.44%. This has driven free cash flow to negative $7.6 billion on a trailing basis. Long-term debt also climbed to $119.1 billion from $65.6 billion.

Despite these concerns, analysts are bullish on Amazon's prospects. Our 24/7 Wall St. price target for Amazon is $341.77, implying 31.73% upside from the current $259.45. This is driven by AWS reacceleration and an AI backlog that reshapes the multi-year earnings picture.