Amazon is under pressure to deliver strong second quarter revenue results following big beats from Google and Microsoft
Amazon (amzn) It has been pressured to announce second quarter revenues after Thursday’s bell, indicating that AI investments are paying off.
The company report is as follows: Google’s (Goog, googl) and Microsoft’s (msft) Announcement of their own blowouts highlighting the growth of each cloud business as a whole, with an increase in customer spending in AI.
Microsoft reported that it helped Azure businesses bring in $75 billion in fiscal year 2025, helping them push market capitalization by over $4 trillion in early trading on Thursday. Microsoft is the second company to reach the milestone behind Nvidia (NVDA).
Google Parent Alphabet delivered its own strong results, noting that cloud revenue rose 32% and purchase commitments from backlogs or not yet realized customers increased by 38%. Search also performed better than expected during the quarter, with sales up 12% year-on-year.
Now it’s Amazon’s turn to show that AI buildouts are driving the rise in revenues for AWS. The company’s stock price has risen by more than 6% and more than 25% per year over the past 12 months. The alphabet has increased by 1.8% and 12% per year over the past 12 months. Microsoft has increased by 27% and 28% respectively.
Amazon will report a $1.32 earnings per share (EPS) of $1121 billion for the quarter, according to estimates from the Bloomberg Consensus. The company had an EPS of $1.26 and revenue of $147.9 for the same period last year.
AWS revenue is expected to exceed $30.7 billion, up 17% from the $26.2 billion brought in last year. But like Microsoft, Amazon says it’s fighting against supply constraints as AI demand outweighs its ability to accumulate data centers.
During the company’s first quarter revenue call, CEO Andy Jussy said Amazon’s AI business is a multi-billion dollar annual run-rate business, with a triple-digit percentage increase from the previous year.
Bofa Global Research Analyst Justin Post wrote in an investor’s note that supply growth should support revenue trends later in the year, and could accelerate AWS revenues.
Outside of AWS, Amazon is expected to increase its online store revenue by $59.1 billion, a 6% increase, while advertising revenue is expected to reach $14.9 billion, with a 17% jump.
“Consumers are far more resilient than expected in the second quarter, and CEO Andy Jussy said in May “we have never seen a decline in demand at this point.”
“(Foreex) should also have a favorable impact on international retail sales, and the dollar is weaker (year-on-year) against most European currencies,” he added.