Amazon Faces High Stakes in Q2 Earnings Amid AI-Driven Cloud Competition
Amazon's upcoming Q2 earnings report carries heightened expectations following stellar performances from tech rivals Google and Microsoft. Both companies showcased robust cloud revenue growth fueled by accelerating AI adoption, with Microsoft's Azure hitting $75 billion in fiscal 2025 and Alphabet reporting a 32% cloud revenue surge.
The spotlight now turns to AWS's ability to demonstrate similar AI monetization. Amazon's stock has gained 25% over twelve months, trailing Microsoft's 28% rally but outpacing Alphabet. Analysts project $1.32 EPS on $162.1 billion revenue—a critical test of whether Amazon's AI infrastructure investments can translate into financial momentum.