Amazon (AMZN) Stock: Is It a Buy Before Thursday’s Q4 Earnings Report?

TLDR

• Amazon reports Q4 2025 earnings Thursday after market close with analysts projecting $1.97 EPS and $211.44 billion revenue
• Company has beaten earnings forecasts eight consecutive quarters and missed revenue estimates once in two years
• UBS targets $311 citing AWS doubling potential by 2028, Citizens JMP at $315 on Anthropic partnership, Evercore ISI at $335
• Wall Street shows 35 Buy ratings and one Hold with average price target of $298.53 indicating 25% upside
• AWS capital spending expected to reach $344 billion through 2027 as cloud segment doubles capacity

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Amazon unveils its fourth-quarter fiscal 2025 results after trading ends Thursday, February 5. Analysts expect strong performance across cloud computing, advertising, and e-commerce operations.

Amazon.com, Inc., AMZN

Wall Street forecasts earnings per share of $1.97 for the quarter. Revenue is projected to reach $211.44 billion, representing 12.6% year-over-year growth. The company enters the report with momentum after beating earnings expectations eight straight quarters.

Over the past two years, Amazon missed revenue estimates just once. The company has exceeded top-line forecasts by an average of 1.1% during this period.

Analyst Price Targets Climb Higher

UBS analyst Stephen Ju increased his price target from $310 to $311. The new target suggests 30.3% upside from current levels. Ju raised his AWS revenue and capital expenditure projections, pushing total capex estimates through late 2027 to $344 billion.

The analyst believes AWS capacity will double by 2027. He sees shares as undervalued given AWS revenue could potentially double by 2028, adding approximately $20 billion in extra cash flow.

Citizens JMP analyst Andrew Boone lifted his target from $300 to $315, implying 32% upside. Boone referenced reports showing Anthropic raised its 2026 revenue forecast to at least $17 billion. Amazon serves as Anthropic’s main computing partner.

Anthropic plans to spend around $7 billion on inference and over $12 billion on training AI models in 2026. Boone expects Amazon to capture most of this spending through AWS.

What Investors Are Watching

Evercore ISI analyst Mark Mahaney kept his $335 price target intact. This represents 40.4% upside potential. Mahaney pointed to accelerating AWS growth driven by strong backlog and AI demand.

Last quarter, Amazon reported revenue of $180.2 billion, up 13.4% year-over-year. This beat analyst expectations by 1.2%. The company delivered strong earnings per share results as well.

Investors will focus on AWS performance as the cloud division competes with Microsoft Azure and Google Cloud in AI infrastructure. Capital expenditure guidance matters given the massive investments required for AI capabilities.

Advertising revenue trends and e-commerce growth will also draw attention. Operating margins across segments remain important for profitability analysis. Management’s guidance for the current quarter will shape near-term sentiment.

The consensus rating includes 35 Buy recommendations and one Hold. The average price target of $298.53 suggests 25.1% upside from current prices. Amazon shares have declined 1.4% over the past year.

Analysts covering the company have largely maintained their estimates over the last 30 days. Revenue is forecast to grow 12.7% year-over-year this quarter, improving from the 10.5% growth recorded in the same quarter last year.

Analysts expect adjusted earnings of $1.95 per share for the quarter.

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