Bank of America expects Amazon (AMZN) to beat third-quarter earnings expectations, as faster growth at Amazon Web Services (AWS) offsets softer advertising growth. The bank forecasts revenue of $202.0 billion and operating profit of $26.4 billion, versus market consensus of $202.2 billion and $26.1 billion. AWS revenue growth is expected to reach 40% year on year, ahead of the 38% consensus, supported by AI infrastructure demand and a projected 39% operating margin; however, growth could reach 42% or more, creating a risk of disappointment. North American retail revenue growth is expected to slow to 6%, while advertising growth eases to 15% from 26% due to less favourable Prime Day timing. For the fourth quarter, the bank expects Amazon's revenue guidance of $239 billion to $246 billion (midpoint $242.5 billion, versus $244.6 billion consensus) and operating profit of $29 billion to $34 billion (consensus $32.9 billion), and it maintains its Buy rating.
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.00 |
| Change that session | -0.95% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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