Amazon forecast to post $178.4B Q1 revenue as AWS jumps 28%
Amazon expects Q1 revenue of $178.4 billion, surpassing the $177.1 billion estimate, with operating income projected at $21.4 billion. AWS growth around 28%, bolstered by $1.3 billion in Anthropic-related revenue, and retail revenue 1%-2% above consensus could offset margin pressure from AI infrastructure and logistics investments.
1. Q1 Revenue and Income Projections
Amazon is expected to report Q1 revenue of $178.4 billion and operating income of $21.4 billion, modestly above consensus of $177.1 billion and $20.7 billion.
2. AWS Growth and AI Contributions
Amazon Web Services is forecast to expand revenue around 28% year-over-year, with Anthropic-related workloads contributing an estimated $1.3 billion to the quarter’s total.
3. Retail Performance and Margin Headwinds
North American retail revenue could exceed consensus by 1% to 2%, but margin pressure may intensify due to rising AI infrastructure costs, increased logistics investments and fulfillment pricing adjustments.
4. Q2 Guidance and Capital Investments
Management is expected to guide Q2 revenue between $185 billion and $190 billion, operating income of $17.5 billion to $21.5 billion, and maintain elevated capital expenditures for cloud infrastructure and AI capacity.