AWS posted its fastest revenue growth in 15 quarters, reaching 28% to $37.6 billion, as Amazon’s massive AI spending plan drives a new $321.66 price target for 2026 from analysts. The stock trades near $247.23 with a 90% confidence score on continued upside ahead of the July 30 earnings report.
Amazon’s cloud unit AWS posted its fastest revenue growth in 15 quarters, rising 28% to $37.6 billion in the first quarter. Total company revenue reached $181.52 billion, a gain of 16.6%, while earnings per share of $2.78 beat estimates by a wide margin.
The AMZN price target for 2026 now sits at $321.66, implying roughly 30% upside from the current $247.23 level. This target is backed by a $200 billion AI spending plan that is already translating into signed customer commitments.
Custom chips including Trainium and Graviton are running at more than $20 billion annually, supported by $225 billion in commitments from clients including OpenAI and Anthropic. Free cash flow dropped 95% to $1.2 billion as capital spending hit $43.2 billion for the quarter.
CEO Andy Jassy stated on the earnings call: “We’ve never seen a technology grow as rapidly as AI. In the first three years of this AI wave, AWS’s AI revenue run rate is over $15 billion.” He also noted the company has high confidence the capex will be monetized well, as it already holds customer commitments for a substantial portion.
Out of 66 analysts, 62 rate the stock a Buy or Strong Buy, with only 4 Hold ratings. Wedbush carries a $293 Outperform target, while the bull case goes as high as $369.61. Long-term debt has grown to $119.1 billion.
Microsoft’s Azure grew 40% last quarter, and Alphabet’s Google Cloud grew 63% to $20.03 billion. Amazon shares are up 7.11% year to date, trading about 11% below the 52-week high. The next earnings report lands July 30.
