Amazon to Report Q3 2025 Earnings on October 30 Amid Bullish Analyst Sentiment
Amazon (NASDAQ: AMZN) is set to announce its third-quarter 2025 earnings on October 30. Wall Street analysts are optimistic, with several bullish calls highlighting significant upside potential for the stock.
### Analyst Ratings and Price Targets
KeyBanc analyst Justin Patterson initiated coverage on Amazon with a Buy rating and set a price target of $300, suggesting over 35% upside from current levels. Patterson believes the market is underestimating the growth potential of Amazon’s cloud business (AWS) and views the current valuation as a compelling buying opportunity. He also points to Amazon’s expanding advertising segment as a key driver for improving retail profits and notes the growing importance of grocery sales in the company’s future.
In a similar vein, Stifel analyst Mark Kelley raised his price target from $260 to $269 while maintaining a Buy rating, indicating more than 20% upside. Kelley referenced Amazon’s management commentary from the second quarter and highlighted stable consumer spending alongside the expansion of same-day grocery delivery for Prime members as positive catalysts.
### Wall Street Expectations for Q3 2025
The consensus among analysts forecasts earnings per share (EPS) of $1.57 for the third quarter, reflecting a 9.7% year-over-year increase. Revenue is expected to reach $177.85 billion, marking 12% growth from the same period last year. The consensus rating stands at Strong Buy, supported by 41 Buy ratings in the past three months and an average price target of $269.03 according to TipRanks.
### Stock Performance and Valuation
Despite strong fundamentals, Amazon’s stock has only gained 0.8% year-to-date, making it the weakest performer among the so-called “Magnificent Seven” tech stocks. The stock currently trades at 29 times forward one-year earnings, which is below its historical average, indicating a relative discount that could appeal to value-oriented investors.
### E-Commerce Growth and Operational Efficiency
E-commerce continues to be the backbone of Amazon’s business, accounting for roughly two-thirds of total sales—over $100 billion in the second quarter alone. Both online store and third-party sales grew by 11% year-over-year during Q2.
Amazon has expanded its same-day or next-day delivery services to over 4,000 smaller regions and secured new brand partnerships such as Estée Lauder’s Origins cosmetics and a specialized Nike storefront. Operational improvements include enhancing inbound logistics, with orders shipped directly from fulfillment centers to delivery increasing by 40% year-over-year. As a result, the average distance traveled per package decreased by 12%, and handling touches per unit declined nearly 15%. CEO Andy Jassy noted these initiatives are streamlining the distribution network, although he acknowledged ongoing uncertainties around tariff impacts.
### Cloud and AI Segment Growth
Amazon Web Services (AWS) posted 17.5% year-over-year revenue growth in Q2, maintaining its position as the largest cloud services provider despite investor concerns over competitive growth rates. The recent AWS outage underscored its critical role in the internet ecosystem.
Significantly, Amazon’s AI business is rapidly expanding, with a $123 billion annualized run rate as of Q2. Management plans to continue investing heavily in chips, data centers, and power infrastructure. Jassy highlighted the company’s strong belief in the growth potential of generative AI, viewing it as a major strategic opportunity.
### Guidance and Outlook
For Q3 2025, Amazon provided guidance expecting sales between $174 billion and $179.5 billion, reflecting 10% to 13% year-over-year growth. Operating income is forecasted to range from $15.5 billion to $20.5 billion, compared to $17.4 billion in the same quarter last year.
Stifel’s Kelley emphasized the positive outlook supported by stable consumer spending and the potential upside from expanding same-day grocery delivery for Prime members in 2026.
—
Amazon’s upcoming earnings report will be closely watched by investors and analysts alike as the company continues to leverage growth in cloud computing, advertising, and e-commerce to strengthen its market position and drive profitability.
https://coincentral.com/amazon-amzn-stock-analysts-push-buy-ratings-before-q3-earnings-release/
