TLDR
- Amazon stock has shown strong early performance in 2026, surpassing its 2025 gains.
- The company reported a 36% year-over-year increase in earnings per share, exceeding analyst expectations.
- AWS continues to experience growth, with sales rising 20% in Q3 of 2025, and analysts expect this trend to continue into 2026.
- Amazon’s advertising business grew by 24% in Q3, contributing significantly to the company’s profitability.
- Wall Street analysts remain overwhelmingly bullish on Amazon, with 36 out of 37 analysts recommending a Buy rating.
Amazon stock (NASDAQ: AMZN) enters 2026 with renewed momentum after a sluggish 2025. The stock gained roughly 5% last year, underperforming the S&P 500’s 16% advance. Early 2026 trading shows a positive trend, with shares up over 6.7%, already surpassing its 2025 performance.
Amazon Stock Outperforms Expectations in Early 2026
Amazon’s stock has seen an early boost in 2026. The company reported earnings per share (EPS) of 1.95 for the most recent quarter, exceeding estimates of 1.57. This performance marks a year-over-year increase of more than 36%. Analysts had expected a slower growth, but the company outpaced those forecasts.
Earlier in 2025, Amazon posted similar gains with EPS rising more than 60% year-over-year in Q1 and over 33% in Q2. The company’s performance exceeded analyst expectations, fueling optimism for the upcoming quarter. With Q4 estimates aligning with prior results, expectations seem conservative, leaving room for another potential upside surprise.
Amazon’s cloud services division, AWS, remains central to the company’s long-term growth. The division continues to experience signs of re-acceleration, with sales growth increasing from 17% in the first half of 2025 to 20% in Q3. Industry analysts expect this momentum to continue in 2026 as AWS strengthens its position in artificial intelligence infrastructure.
Alongside AWS, Amazon’s advertising business has become a key growth driver. Advertising revenue in Q3 rose 24% year-over-year to $17.7 billion, contributing to overall profitability. As user engagement improves across Amazon’s platform, the advertising segment’s higher margins boost the company’s financial performance.
Wall Street Analysts Bullish on Amazon Stock
Sentiment toward Amazon stock remains overwhelmingly positive. Of the 37 analysts covering the stock, 36 rate it a Buy, with only one assigning a Hold rating. The average 12-month price target for Amazon stock is $297.29, indicating a potential upside of 23.43% from its current price of $240.85.
Recent analyst updates support the optimism, with many expecting AWS to grow at an accelerated pace. Jefferies analyst Brent Thill set a price target range of $275 to $300, driven by continued growth in AWS and advertising.
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