Amazon Posts Record Q1 Earnings, JPMorgan Raises Price Target
Amazon reported record Q1 2026 results, surpassing analyst estimates on revenue and earnings. AWS revenue grew 22%, the fastest in 15 quarters, and operating margin reached an all-time high. JPMorgan raised its price target to $210.
Key Numbers
Amazon (NASDAQ: AMZN) reported Q1 2026 results that beat analyst expectations, with record revenue of $143.2 billion and earnings per share of $1.89, exceeding the $1.45 estimate. The stock rose 4% in after-hours trading.
Key Financial Results
| Metric | Q1 2026 | Analyst Estimate | YoY Change |
|---|---|---|---|
| Revenue | $143.2B | $138.5B | +15% |
| Net Income | $19.5B | $15.2B | +28% |
| EPS | $1.89 | $1.45 | +30% |
| AWS Revenue | $25.3B | $24.1B | +22% |
| Operating Margin | 12.5% | 11.2% | +230 bps |
Key Highlights
- AWS Growth: AWS recorded its fastest quarterly growth in 15 quarters, driven by rising demand for AI and cloud services.
- Operating Margin: Overall operating margin reached 12.5%, an all-time high, thanks to improved operational efficiency and higher AWS margins.
- Advertising: Advertising revenue grew 25% to $12.1 billion.
Guidance
Amazon guided Q2 2026 revenue between $148 billion and $153 billion, above the $146.5 billion consensus. Operating income is expected to be between $11 billion and $14 billion.
Impact on Stock
JPMorgan (NYSE: JPM) raised its price target on Amazon from $200 to $210, maintaining an "Overweight" rating. Four other investment banks also raised their targets, reflecting confidence in the company's growth trajectory.
What This Means for Investors
Amazon's results underscore the strength of its core businesses, particularly cloud computing and advertising. However, investors should watch for high capital expenditures on AI and increasing competition. Monitoring operating margin trends and AWS growth in coming quarters is advisable.
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