TLDR
- Amazon reports Q4 2025 earnings Thursday after market close with revenue expected at $211.4 billion
- AWS exceeded Q3 targets with $33 billion revenue and plans to double capacity by 2027
- UBS analyst raised price target to $311, calling Amazon a “coiled spring” for growth
- Capital expenditure estimates increased to $344 billion through 2027, up from $300 billion
- Company cutting 16,000 corporate jobs to streamline operations and reduce bureaucracy
Amazon reports fourth-quarter 2025 earnings after the closing bell Thursday. Investors are watching closely for updates on Amazon Web Services performance.
Analysts expect revenue of $211.4 billion and adjusted earnings per share of $1.97. First-quarter guidance will also be key, with consensus estimates at $175.6 billion in revenue and $1.73 EPS.
UBS analyst Stephen Ju raised his price target to $311 from $310 this week. He kept his Buy rating on the stock.
Ju described Amazon as a “coiled spring” ready for growth. The catalyst is AWS capacity expansion and accelerating revenue growth.
AWS Beats Expectations
Amazon Web Services delivered strong third-quarter results in October. The cloud unit posted $33 billion in revenue, beating the $32.5 billion estimate.
Management shared plans to double AWS capacity by 2027 during the earnings call. This aggressive expansion strategy has prompted analysts to revise their projections.
UBS now forecasts total capital expenditures of $344 billion from Q4 2025 through Q4 2027. The previous estimate stood at $300 billion.
AWS-specific CapEx jumped from $225 billion to $260 billion over the same timeframe. The market hasn’t fully priced in AWS revenue doubling by 2028, according to UBS.
Cash Flow Upside
The increased spending could unlock $20 billion in additional free cash flow by 2028. That’s based on UBS projections for AWS growth.
This marks the second consecutive quarter of AWS acceleration. Ju expects investor confidence to strengthen as results confirm the trend.
Beyond cloud computing, Amazon’s other investments should contribute to cash flow growth. E-commerce improvements, content expansion, and LEO initiatives will drive GMV, advertising, and data revenue higher.
Cost Cutting Measures
Amazon announced 16,000 corporate job cuts in January. The company cited the need to eliminate management layers and reduce bureaucracy.
The layoffs come as Amazon ramps up infrastructure spending for AWS. The move suggests a shift toward operational efficiency while investing heavily in cloud capacity.
Thursday’s earnings will show whether AWS momentum continued through the holiday quarter. Revenue growth rates and capacity utilization metrics will be critical data points.
Management commentary on AWS demand trends and capital allocation plans will also move the stock. Investors want confirmation that the capacity expansion will translate into revenue growth.
The first-quarter outlook will provide insight into Amazon’s confidence level heading into 2026. Guidance above consensus could fuel further gains in the stock price.
The post Amazon (AMZN) Stock: What to Expect from Today’s Earnings Release appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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