**Amazon’s Valuation and Growth Outlook**
Amazon’s forward 12-month price/earnings (P/E) ratio stands at 25.98, surpassing the Zacks Internet – Commerce industry’s average of 21.95. Despite appearing overvalued, key growth catalysts—including a reaccelerating AWS and record Prime Day results—suggest an encouraging near-term outlook. From June 23-26, Amazon generated a record $26.4 billion in U.S. online sales during Prime Day, a 9% increase from the previous year.
In Q1 2026, AWS revenue soared 28% year over year to $37.6 billion—the fastest growth rate in 15 quarters. The surge was driven by demand for generative AI workloads, with Bedrock customer spend climbing 170% quarter over quarter. For Q2, management projects net sales between $194 billion to $199 billion, indicating growth of 16% to 19%, while operating income is estimated between $20 billion to $24 billion. The Zacks Consensus Estimate for Amazon’s earnings for 2026 is $8.86 per share, reflecting a 23.57% increase compared to the previous year.
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