Amazon.com, Inc. (AMZN.US) analysts supported ahead of performance: Revenue, profits expected to exceed expectations, AWS growth expected to accelerate

Amazon.com, Inc. (AMZN.US) will release its second quarter 2025 financial results on July 31st, Eastern Time. Wall Street analysts are predicting that due to the continued growth of Amazon.com, Inc.'s web services (AWS) and expansion in retail and advertising businesses, Amazon.com, Inc.'s Q2 revenue will reach $162 billion, with an estimated earnings per share of $1.32. Key themes that investors will focus on in this latest financial report and management conference call include AI innovation and AWS's AI-driven services, improving logistics efficiency, and trends in AWS profitability (increased capital expenditure may impact profitability). Analyst Lee Horowitz from Deutsche Bank Aktiengesellschaft stated that while tariff issues were a focus when Amazon.com, Inc. provided guidance for the second quarter, with strong consumer performance and delayed costs related to tariffs, there may be upside potential in the second and third quarters. He noted, "One thing has become very clear, with the absence of Temu and Shein, Amazon.com, Inc.'s market share growth has accelerated." The firm also expects revenue growth for AWS to pick up in the second half of this year. Investment bank Needham raised its expectations for Amazon.com, Inc. before the release of its second quarter financial report. Analyst Laura Martin also believes that the most serious tariff impact has passed and mentioned the record-breaking sales of Prime Day. She particularly pointed out that Generative Artificial Intelligence (GenAI) is structurally reducing the costs of Amazon.com, Inc.'s logistics system and boosting its automation efficiency. Citigroup continues to maintain a bullish view on Amazon.com, Inc. Analyst Ronald Josey and his team expect this e-commerce giant's revenue and operating profits to exceed expectations. The analyst emphasized, "Considering the ongoing improvement in the overall efficiency of fulfillment center networks, cost controls in place, and the rising proportion of high-profit advertising business and AWS revenue, we expect its profitability to continue to expand." Analyst Luca Socci is also very optimistic about the future of Amazon.com, Inc. He stated, "The core focus of this financial report is not retail sales (Prime Day performance was excellent) or the growth rate of AWS (expected to be satisfactory). Investors are starting to form a new narrative around Amazon.com, Inc.'s innovation capabilities. We may be witnessing the rise of a new leader in Siasun Robot & Automation technology, as well as a truly competitive low-orbit satellite company. Not to mention the progress of its Zoox robotaxi and self-developed AI chip. Amazon.com, Inc. will once again prove that its intrinsic DRIVE is: 'Your profit, is my opportunity'. As a result, it fears no competition with Tesla, Inc., Microsoft Corporation, Alphabet Inc. Class C, and NVIDIA Corporation. In other words, I expect this financial report to further help us understand Amazon.com, Inc.'s promising and highly rewarding new businesses." However, Lucas Ma from Envision Research issued a warning. He stated, "Amazon.com, Inc.'s free cash flow has been declining in recent quarters. Unfortunately, I anticipate that this trend will continue in the upcoming second quarter financial report, as the competition in AI infrastructure intensifies, coupled with high political uncertainty in GEO Group Inc. This may limit its capital allocation ability for future growth and increase valuation risks."