Amazon Q4 Earnings Report: A Deep Dive into the Tech Giant’s Financial Performance

Amazon is set to announce its fourth-quarter earnings, marking the end of a tech earnings season that has been centered around one crucial question: Will the massive investments in AI technology pay off in the long run?

The company has committed approximately $125 billion for capital expenditures in 2025, with a significant portion dedicated to expanding its AI and data center infrastructure. At the same time, Amazon has streamlined its operations by eliminating about 30,000 corporate positions as part of a strategy to combat bureaucracy, as outlined by CEO Andy Jassy.

Key Figures to Watch

Revenue Expectations: Wall Street analysts anticipate fourth-quarter revenue to fall within the range of $211-212 billion, nearing the upper end of Amazon’s guidance. Operating income is projected to be around $25 billion, with earnings per share hovering around $1.96, representing a modest 5% increase from the same period last year.

Cloud Growth: Investors will be keen on learning about the company’s 2026 capital spending plans and examining the growth trajectory of Amazon Web Services (AWS) to gauge the returns on AI investments. In the previous quarter, AWS revenue surged by approximately 20% year-over-year to reach $33 billion, marking its fastest growth rate since late 2022.

Wedbush analyst Scott Devitt expressed optimism about AWS’s prospects in 2026, foreseeing potential for surpassing operating income expectations. However, the long-term demand for cloud and AI services remains uncertain, with William Blair analyst Dylan Carden estimating AWS’s annual growth rate to range from 21% to 36% through 2027.

Retail Performance: Amid the AI fervor, it is important to note that Amazon remains a dominant player in the retail and e-commerce sectors. The fourth quarter typically marks the peak season for retail activities. Wedbush analysts anticipate Amazon’s online stores revenue to reach $82.5 billion, reflecting a 9.3% increase from the same quarter a year ago.

The firm’s consumer survey revealed that 46% of U.S. consumers intend to boost their online spending during the fourth quarter, with 62% planning to allocate more funds specifically for Amazon over the next year, surpassing competitors like Walmart and Target.

Logistics and Grocery Expansion: Amazon recently announced that it achieved a new milestone by delivering over 13 billion items on the same or next day globally in 2025, setting a record for the third consecutive year. The company has also expanded its same-day delivery services for perishable groceries to over 2,300 cities.

In the realm of AI, Amazon’s shopping assistant Rufus has been utilized by 250 million customers, boosting purchase completion rates by 60%. Despite these advancements, the retail landscape has become increasingly competitive, with rivals like Walmart, Temu, and Shein intensifying pressure on Amazon’s margins.

Stay tuned for detailed coverage of Amazon’s Q4 earnings report on Thursday afternoon.