Amazon (AMZN) will report fourth-quarter earnings after the bell on Thursday, February 5, with a strong focus on its AI initiatives and related spending. Investors want clarity on slowing growth and rising capital expenditures.
For Q4 2025, analysts expect earnings per share of $1.96 and revenue of $211.5 billion, versus $1.86 and $187.8 billion a year earlier. That implies about a 5% EPS rise and roughly 13% revenue growth.
The AWS segment is forecast at $34.9 billion, up from $28.8 billion last year. Online store sales are seen near $82.3 billion, and advertising revenue about $21.2 billion.
Wall Street will watch capital expenditures closely after $34.2 billion in cash capex in Q3 and an expected $34.9 billion in Q4. Brian Olsavsky, the company’s CFO, said the firm was on pace to spend $125 billion in 2025 and would continue to ramp spending in 2026 to meet AI demand (Ed. note: Elevated capex has heightened investor scrutiny).
That investment should help chip and infrastructure suppliers, while heavy spending could unsettle traders. Recent divergent stock moves by Meta and Microsoft illustrated market sensitivity to capex plans.
Shares have gained about 34% over five years but showed slower momentum recently. Analyst targets run from $244 to $340, and Cantor Fitzgerald reiterated an Overweight rating with a $260 target versus a current price near $224.
