Amazon Raises FY26 Capex to $200B; AWS Growth Forecast at 38%
UBS cut Amazon’s price target to $301 after Q4 results, while company raised FY2026 capex guidance to $200 billion versus $150 billion expected. AWS revenue growth is forecast to accelerate from 19% in 2025 to 38% in 2026, driven by multi-year deals like Prosus.
1. Price Target Cut and Capex Update
UBS reduced its price target to $301 following Amazon’s Q4 performance, while Amazon increased its FY2026 capital expenditure guidance to $200 billion, surpassing previous market expectations of $150 billion.
2. AWS Growth Projections
Analysts forecast AWS to grow revenue by 38% in 2026, up from 19% in 2025, underscoring its role as the primary growth engine supporting overall company expansion.
3. Prosus Partnership
Amazon signed a multi-year cloud and AI agreement with Prosus, potentially valued at hundreds of millions of dollars, to develop AI-first applications across Latin America, Europe and India.
4. Analyst Outlook
Despite the price target reduction, approximately 92% of analysts maintain a Buy rating, with a consensus median target of $285 implying roughly 38% upside.