Amazon (AMZN) Q1 Earnings Report 2026

Amazon It is scheduled to report first-quarter earnings after markets close on Wednesday.

Here’s what Wall Street is expecting, according to estimates compiled by LSEG:

• earnings per share: $1.64
• Income: $177.3 billion

Wall Street is also looking at other key revenue figures:

• Amazon Web Services: According to StreetAccount, $36.92 billion is expected
• advertising: StreetAccount expects $16.87 billion

Revenue is projected to rise 14% in the first quarter, which is faster than a year earlier, when sales rose 8.6% to $155.7 billion, and roughly in line with last quarter’s 13.6% growth.

Investors will keep a close eye on Amazon’s cloud business, where revenue is expected to grow about 26% from a year ago. AWS revenue grew nearly 24% in the fourth quarter, topping analysts’ estimates and its fastest growth in three years.

Amazon and other big tech companies are trying to justify their huge artificial intelligence spending, which could reach $700 billion in 2026. fellow hyperscalers Microsoft, alphabet And meta It is also scheduled to report results after the bell on Wednesday, marking the first time the group will update Wall Street on capex since the start of the US-Iran war in February.

The conflict has caused supply chain disruptions and driven oil prices so high that Amazon has introduced a 3.5% fuel surcharge for some of its third-party sellers.

Amazon estimated in early February that its capital spending would reach $200 billion in 2026, a sharp increase from last year and more than $50 billion more than analysts had expected.

The company is racing to build data centers and other infrastructure to meet the surge in demand for AI services. Last quarter, Amazon CEO Andy Jassy said it could grow even faster if AWS had more capacity, noting that there is “very strong demand” from customers for both core and AI workloads.

First disclosed in its annual shareholder letter released earlier this month, JC said that AWS’s AI revenue run rate reached $15 billion in the first quarter, and it is “growing rapidly.”

During the first quarter, Amazon deepened its investments in OpenAI and Anthropic, both AI companies that committed to using more of AWS’s cloud compute and chips over several years.

There is “reason to believe” that Amazon’s capital spending budget could grow even more this year as a result of those deals, Stifel analysts wrote in a note over the weekend.

“Despite not incurring explicit capex spending, both investments are likely to increase compute spend funneled back into AWS spending, raising questions about whether the current capex guide is sufficient to meet incremental workloads in AWS,” Stifel analysts wrote. The company has given a buy rating on Amazon shares.

While Amazon directs more capital to AI investments, it continues to reduce the number of its corporate heads. The company announced at the beginning of the first quarter that it would lay off 16,000 employees, after cutting 14,000 in October.

Stifel said Amazon’s capital spending is also being boosted by investments in its new Internet-from-space service, called LEO. The company aims to launch commercial service in mid-2026.

Earlier this month, Amazon announced it planned to acquire the satellite company globalstar The deal is valued at approximately $11.57 billion, the second-largest acquisition after the $13.7 billion purchase of Whole Foods in 2017.

The company is working to produce enough satellites and launch more of them into space as a Federal Communications Commission deadline approaches in July, requiring it to place about half of its 3,236-satellite constellation in low Earth orbit.

Amazon now has 270 satellites Into orbit after launch on Monday, and another 32 satellites will go into space on Thursday. The company has asked the FCC for an extension but has not yet received approval, while its primary satellite internet rival, Elon Musk’s SpaceX, has urged the agency to deny Amazon’s request.

Watch: Amazon needs to spend more to keep AWS as dominant AI play