Amazon AWS Sales Jump 24% to $35.6B; Price Target Cut to $265
Amazon reported Q4 net sales of $213.4B, a 14% increase, with AWS revenue climbing 24% to $35.6B, driving an annualized $142B run rate despite a planned $200B capex program. Europe’s Ariane 64 rocket deployed 32 Amazon Leo satellites to low Earth orbit, accelerating its internet network rollout.
1. Q4 2025 Financial Performance
Amazon reported net sales of $213.4B in Q4 2025, up 14% year-over-year, while AWS revenue climbed 24% to $35.6B, delivering an annualized run rate of $142B and marking its fastest segment growth in 13 quarters.
2. Capex Plans and Analyst Revisions
The company’s planned $200B capital expenditure program raised investor concerns, prompting Bernstein to lower its price objective to $265 from $300 while maintaining an Outperform rating.
3. Amazon Leo Satellite Launch
Europe’s Ariane 64 heavy-lift rocket successfully deployed 32 Amazon Leo satellites to low Earth orbit, advancing its low-latency internet service ambitions and intensifying competition with rival constellations.
4. Q1 2026 Operating Income Guidance
For the first quarter of 2026, Amazon projects operating income between $16.5B and $21.5B, underscoring continued profit generation despite elevated spending.