Amazon (AMZN) reported mixed results after the bell on Thursday, missing Wall Street’s targets on earnings per share and revenue, but posting better-than-anticipated Q3 AWS revenue. Operating income topped the company’s own estimates.
Amazon stock fell more than 7% in premarket action Friday, but pared much of those losses as the trading day went on.
For the quarter, Amazon saw earnings per share (EPS) of $1.89 on revenue of $201.9 billion. Analysts projected EPS of $1.97 on revenue of $202.25 billion, according to Bloomberg’s analyst consensus estimates.
The company reported EPS of $1.95 and revenue of $180.16 billion in the same period last year.
237.59 -6.20 (-2.54%)
As of 2:30:34 PM EDT. Market Open.
The biggest number from the company’s report was its AWS revenue, which increased 39% year over year to $46.0 billion.Â
It’s the second consecutive quarter the segment has grown more than 30%, and CEO Andy Jassy says the company anticipates more than 40% growth in the business in 2027 and 2028.
Analysts were largely positive on the news.
BofA Global Research’s Justin Post wrote in an investor note that while AWS failed to impress in the quarter, the broader trend for the segment is positive. And though he maintained the firm’s Buy rating on the stock, he lowered his price target to $317 from $320.
TD Cowen analyst John Blackledge noted that the strong AWS growth was offset by misses on advertising and North America revenue, as well as foreign exchange headwinds on international sales.
Like Post, Blackledge maintained the bank’s Buy rating on the stock, but lowered his price target to $340 from $350.
Mark Mahaney over at Evercore ISI noted that Amazon projected potential AWS revenue of $1 trillion over the next 5 to 10 years and reiterated his Buy rating and price objective of $355.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley or reach out on Signal or Telegram.
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