Overview
- AWS sales grew about 20% year over year in Q3 2025, exceeding some forecasts for when growth would reaccelerate, according to Benchmark.
- Amazon lifted 2025 capital spending guidance to roughly $125 billion and signaled a further increase in 2026, CFO Brian Olsavsky said.
- Amazon and OpenAI agreed to a multiyear cloud-compute partnership reported at about $38 billion over seven years, with leaders from both companies touting AWS infrastructure for OpenAI’s workloads.
- Benchmark reiterated a Buy rating and raised its price target to $295, as other commentators also highlighted long-term upside despite near-term volatility.
- Commentary notes a forward P/E near 35 times and emphasizes AWS’s outsized profit role, with roughly 60% of operating income generated by a segment that represents about 18% of net sales, even as heavy investment pressures free cash flow.