Amazon Q2 Earnings Preview: AWS Drives Growth, Satellite Strategy Targets New Markets
Amazon is set to release its Q2 earnings report after the market closes this Thursday. According to analyst forecasts, Amazon’s revenue for the second quarter of 2026 is expected to reach $196.994 billion, with adjusted earnings per share projected at $2.299.
In terms of valuation, Amazon’s current price-to-earnings ratio stands at 32.91, placing it at a relatively low level compared with the past five years.
Amazon’s revenue is primarily composed of six segments: Online Stores, Physical Stores, Retail Third-Party Seller Services, Advertising Services, Retail Subscription Services, and Amazon Web Services (AWS). Among these, Online Stores, Third-Party Seller Services, and AWS are the company’s major revenue contributors. AWS revenue is expected to grow 31.34% year over year in the second quarter, highlighting its continued role as a key growth driver for Amazon.
From a regional breakdown perspective, North America continues to be Amazon’s core revenue driver and the region’s operating margin is approximately twice that of Amazon’s international markets.
Amazon is exploring new growth opportunities, with a plan to deploy up to 5,105 new satellites,and has filled an application with FCC. They project to begin global mobile connectivity services in 2028.
Meanwhile, UBS analyst maintained a Buy rating on Amazon but lowered the price target from $333 to $305, as investors continue to focus on AI investments, cash flow performance, and the commercialization progress of new businesses.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
