Amazon’s Financial Outlook for 2026
Amazon is positioned for potential growth in 2026, driven by a reacceleration in its cloud computing segment, Amazon Web Services (AWS), which reported a 20% year-over-year revenue increase in Q3 2025. AWS accounted for 66% of Amazon’s operating profits during that quarter. Additionally, Amazon’s advertising services generated $17.7 billion in revenue in Q3, marking a 24% increase year-over-year and highlighting its crucial role in enhancing overall profit margins.
Despite a disappointing performance in 2025—where Amazon’s stock rose only 6%, compared to the S&P 500’s 18% gain—the company’s valuation is now aligned with its peers, trading at a more reasonable operating price-to-earnings ratio. Wall Street analysts project that Amazon’s sales will grow by approximately 11% in 2026, with expectations that profits, particularly from AWS and advertising, will outpace revenue growth, setting the stage for a strong recovery.
