- Amazon’s cloud computing division, AWS, has seen its fastest growth in nearly three years, with $33 billion in third-quarter revenues and a 20.2% year-over-year expansion. The company’s forward guidance projects continued growth, positioning Amazon to benefit from the enterprise AI transformation reshaping the tech landscape.
- The Zacks Consensus Estimate for Amazon’s 2026 earnings is $7.85 per share, indicating a 9.46% jump from the previous year. This strong performance is driven by AWS’s reacceleration and the launch of new AI services, setting the stage for a potential AI-driven rally for the e-commerce giant in 2026.
- Amazon’s recent innovations, including the introduction of Graviton5 and Trainium3 UltraServers, enhance its competitive edge in AI and cloud services for 2026. The company’s focus on agentic AI development, custom models, and reinforcement fine-tuning capabilities underscores its commitment to staying at the forefront of AI technology.
- With $125 billion in infrastructure investments and a commitment to expanding its AWS data center capacity, Amazon signals a long-term commitment to AI and cloud services. The company’s aggressive investment strategy aims to capitalize on the massive opportunity presented by AI, driving growth and profitability over the coming years.
- Despite facing competition from rivals like Google Cloud and Microsoft Azure, Amazon’s AWS remains a market leader with $33 billion in quarterly revenues. The company’s comprehensive AI infrastructure stack, global footprint, and strong customer relationships position it favorably in the competitive cloud market landscape, offering potential for sustained outperformance in 2026.
Read more at Nasdaq: Will Accelerating AWS Revenue Growth Drive AMZN Stock’s 2026 Rally?