Amazon (AMZN) Q2 Earnings: Can AWS Power Another Blockbuster Quarter?

AWS is the cash cow Wall Street loves—but can it keep delivering as cloud competition heats up?

Amazon Web Services (AWS) has long been the profit engine behind Amazon's empire. As Q2 earnings drop, all eyes are on whether cloud revenue can offset retail's seasonal slump.

The cloud arms race intensifies

Microsoft Azure and Google Cloud are gaining ground, but AWS still dominates with 34% market share. The question isn't if AWS grew—it's by how much.

Enterprise adoption vs. cost-cutting

While AI workloads drive new contracts, some CFOs are still optimizing cloud spend. Will Amazon's recent price cuts backfire or boost volume?

One thing's certain: analysts will forgive weak e-commerce numbers if AWS saves the day—again. Because nothing matters more than keeping that growth story alive for another quarter.

AWS in Q2 2025: A Boost Coming For AMZN Stock?

Additionally, Amazon’s AWS division made several strategic updates in Q1 2025 that positioned the company to capitalize on surging enterprise AI demand. As the AI sector continues to dominate the US markets, Amazon has played into it well through AWS. The launch of Amazon Bedrock AgentCore represented a significant milestone, offering enterprises a comprehensive AI agent deployment platform with industry-leading runtime support of up to eight hours for complex workloads. The development received a warm reception from customers. As a result, positive momentum was felt in AMZN stock from investors.

Recently, analysts at Bank of America issued a new client note detailing several key indicators to look out for from the e-commerce giant’s earnings report. One of the most significant indicators of solid quarterly earnings will be AWS revenue. BofA expects AWS growth to continue accelerating at the back end of the year, giving investors potentially double upside from cloud and retail. In addition, operating returns on AWS services have been higher than its seasoned e-commerce business, signaling a major perspective shift.

Furthermore, year-to-date, Amazon (AMZN) stock is only up 3.7%. The stock has struggled this year, from Trump’s tariffs to trade wars and the mass stock market meltdown. Despite the odds, its valuation holds up and analysts remain bullish. On July 21, Baird analyst Colin Sebastian maintained an “Outperform” on the stock and raised the price target from $220.00 to a new target of $244.00. Those forecasts could be topped and quickly revised should AWS boost Amazon’s upcoming earnings report.