Amazon Q2 earnings to put spotlight on AWS growth amid AI spending

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Amazon (AMZN) is acceptable to study its 2nd 4th net aft the doorbell connected Thursday, a week aft Google genitor Alphabet's (GOOG, GOOGL) results fell level connected Wall Street.

During its net call, Alphabet said it volition summation spending connected its AI build-out, raising its anticipated superior expenditures to betwixt $195 cardinal and $205 billion, up from its anterior estimation of $180 cardinal to $190 billion.

And portion Alphabet's wide net and gross topped expectations, that spending fig was capable to nonstop investors for the exits. Shares fell much than 6% pursuing the news.

In February, Amazon said it planned to walk immoderate $200 cardinal connected superior expenditures successful 2026. If the institution pushes that higher, investors could respond arsenic they did to Alphabet's revised spending. Analysts are projecting capex of $48.7 cardinal for the period.

But Amazon could support Wall Street blessed if it shows that those investments are paying disconnected for its Amazon Web Services (AWS) segment.

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At close: July 28 astatine 4:00:01 PM EDT

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"We proceed to presumption AWS maturation arsenic the cardinal metric driving sentiment arsenic investors wrestle with the returns connected the monolithic infrastructure physique out," KeyBanc Capital Markets expert Justin Patterson wrote successful an capitalist note.

For the quarter, Amazon is expected to study net per stock of $1.82 connected gross of $196.9 billion. The institution saw EPS of $1.68 and gross of $167.7 cardinal successful the aforesaid play past year.

AWS is projected to make $40.5 cardinal successful the quarter, up 31% from the $30.8 cardinal the institution reported successful Q2 2025.

"We stay constructive connected AWS's improving AI positioning, which should beryllium evident successful results that amusement AWS maturation acceleration, backlog expansion, affirmative Bedrock datapoints, and Trainium benefits to [year-over-year] margins," BofA Global Research expert Justin Post wrote to investors.

Wall Street volition besides beryllium connected the lookout for Amazon's remaining show obligations (RPOs), oregon contracts the institution has signed but has yet to present on. Revenue backlog for RPOs deed $364 cardinal past quarter.

In summation to its unreality business, Amazon has been expanding its spot sales, renting retired capableness to Meta (META), OpenAI (OPAI.PVT), Anthropic (ANTH.PVT), and others. CEO Andy Jassy antecedently teased the thought of selling the company's chips for customers to instal successful their ain information centers, which could boost the company's bottommost line.

Outside of AI, Amazon's e-commerce level is anticipated to spot gross of $69.8 billion, an summation of 13% twelvemonth implicit year. Advertising gross is acceptable to travel successful astatine $19.3 billion, up 23%.