Amazon earnings: Can AWS growth satisfy Wall Street as capex climbs?

Amazon's third-quarter earnings, due after market close today, will focus on whether accelerating AWS cloud growth justifies the company's rising AI infrastructure spending, with 2026 capital expenditures projected at $220 billion versus $132 billion last year. Analysts expect AWS revenue to rise 37% year-over-year to roughly $45.4 billion, with an operating margin near 37.3%. Amazon's retail growth is forecast to slow to 5% due to Prime Day's shift to Q2, while total quarterly revenue is seen at $202 billion, up 12%. The company added $78 billion in debt through June and borrowed about $30 billion more in Q3. Amazon shares have risen 12.3% year-to-date, with a consensus price target of $336 implying 35% upside.