Amazon Q4 EPS misses estimates; co plans $200 bln in capital expenditures in 2026

Overview

• E-commerce giant's Q4 net sales rose 14% yr/yr

• Q4 EPS was $1.95, missing analyst expectations

• Company's AWS segment sales grew 24% yr/yr

Outlook

• Amazon expects Q1 2026 net sales between $173.5 bln and $178.5 bln

• Operating income for Q1 2026 expected between $16.5 bln and $21.5 bln

• Amazon plans $200 bln in capital expenditures in 2026

Result Drivers

• AWS GROWTH - AWS segment sales increased 24% yr/yr, driven by rapid innovation and customer expansion, per CEO Andy Jassy

• INTERNATIONAL SALES - International segment sales increased 17% yr/yr, aided by favorable foreign exchange rates

• AI INVESTMENTS - Free cash flow decreased due to $50.7 bln increase in property and equipment purchases, primarily for AI investments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 67 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for Amazon.com Inc is $300.00, about 28.8% above its February 4 closing price of $232.99

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBw3xyb34a

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