AWS Posts Record Profit as Amazon Shares Stay Below Peak

Investor concern over the cost and staying power of AI data‑center spending has kept the stock under pressure despite AWS’s blowout results and multi‑year growth targets.

Overview

Amazon’s cloud unit reported record quarterly revenue for AWS of about $45.9 billion and operating earnings near $17.8 billion, reflecting very strong margins and accelerating growth.
Management gave aggressive multi‑year guidance for AWS, saying revenue could grow roughly 40% year‑over‑year in 2027 and 2028 and pointing to a large backlog of orders for data‑center capacity.
The broader market reacted skeptically to the report, leaving Amazon shares materially below recent highs and driving elevated trading volume as investors weigh the durability of AI and infrastructure spending.
Some analysts pushed back with upgrades and higher price targets, including a Phillip Securities upgrade to buy and a $330 target, which briefly helped the stock regain momentum.
The key risks to watch are the pace and scale of Amazon’s planned data‑center build‑outs and whether enterprise AI demand stays high enough to convert AWS’s backlog into sustained revenue and free cash flow.