Amazon CEO Andy Jassy attends the Allen & Firm Solar Valley Convention in Solar Valley, Idaho, on July 9, 2025.
Kevin Dietsch | Getty Pictures
Amazon will report second-quarter outcomes after the market shut Thursday.
Here is what analysts surveyed by LSEG predict:
- Earnings per share: $1.33
- Income: $162.1 billion
Wall Avenue can be taking a look at different key income metrics:
- Amazon Internet Companies: $30.8 billion, in line with StreetAccount
- Promoting: $14.99 billion, in line with StreetAccount
The corporate spooked traders in Could when it warned in its earnings report that “tariff and commerce insurance policies,” in addition to “recessionary fears,” might weigh on second-quarter outcomes.
Amazon CEO Andy Jassy mentioned on the time that “none of us is aware of precisely the place tariffs will settle or when.” Jassy later mentioned the corporate hasn’t seen “any attenuation of demand at this level” because of tariffs and that Amazon has taken steps to maintain costs regular on its web site.
President Donald Trump‘s unpredictable tariff agenda primarily poses a risk to Amazon’s sprawling e-commerce business, which accounts for the majority of its gross sales. The core on-line shops unit is anticipated to publish $58.98 billion in gross sales, in line with StreetAccount. Wall Avenue is projecting vendor providers income to succeed in $38.7 billion through the quarter.
A number of analysts mentioned the tariff and geopolitical backdrop for Amazon has change into extra manageable in latest months, which is one in all a number of causes they’re optimistic in regards to the firm’s second-quarter report.
“By way of the quarter, the US shopper backdrop has remained supportive as tariff considerations wane and customers proceed to spend,” analysts at Deutsche Financial institution wrote in a July 22 analysis word. The agency has a purchase ranking on Amazon’s inventory.
Trump’s tariffs could also be giving Amazon a lift, to some extent.
The Deutsche analysts mentioned it is “change into abundantly clear” that Amazon has gained a higher share of the U.S. e-commerce market within the face of diminished competitors from ultra-cheap Chinese language on-line retailers Shein and Temu, which is owned by PDD Holdings.
Each corporations have struggled to protect their grip on American consumers after the Trump administration ended de minimis, a commerce exemption that allowed low-value shipments to enter the nation duty-free, and instituted increased tariffs on Chinese language imports.
Amazon’s third-quarter steering will give a view into whether or not the corporate expects tariff dangers to proceed. Analysts are projecting income to succeed in $173.3 billion within the present quarter.
Exterior of retail, traders shall be conserving a detailed eye on Amazon’s cloud enterprise. Income at AWS within the first quarter grew 17%, which fell in need of analysts’ estimates and was the slowest progress in a 12 months. Analysts are projecting about the identical year-over-year progress for the second interval.
Jassy mentioned in Could that the cloud enterprise would have grown quicker if it weren’t for capability constraints brought on by shortages of AI chips and different elements.
Amazon has pledged to spend as much as $100 billion this 12 months, largely on AI-related investments for AWS. Wall Avenue shall be being attentive to whether or not Amazon reaffirms or boosts that quantity. AI and cloud competitor Google final week upped its capital spend to $85 billion this 12 months as a part of its second-quarter earnings.
Like different main tech corporations, Amazon has been laser-focused on AI. Through the quarter, Amazon started releasing an AI-upgraded model of its Alexa voice assistant and it launched a brand new agentic AI group in its skunkworks analysis and improvement unit.
The expertise can be reworking Amazon’s workforce. In a June note to staff, Jassy mentioned the corporate’s company worker base will shrink within the coming years because it adopts extra generative AI instruments and brokers.
“It is exhausting to know precisely the place this nets out over time, however within the subsequent few years, we count on that it will cut back our whole company workforce,” Jassy wrote.
Amazon shares have lagged these of its tech friends this 12 months regardless of its heavy investments in AI. Amazon’s inventory is up 5.4% 12 months up to now, whereas shares of Meta and Microsoft have climbed roughly 20% over the identical stretch. Apple, which has struggled with its AI improvement, is down about 15.5% to date this 12 months.
