Amazon.com (AMZN, Financials), the e-commerce and cloud computing business, is due to announce second-quarter earnings on Thursday as investors gauge whether higher artificial intelligence spending are translating to better cloud growth.
Wall Street anticipates Amazon to post earnings of $1.82 per share on revenue of $196.9 billion, compared with earnings of $1.68 per share and revenue of $167.7 billion a year ago.
Amazon Web Services is predicted to post $40.5 billion in sales, up 31% from the year-ago quarter. Cloud performance will be the main statistic that investors will be focused on.
The earnings release comes amid renewed scrutiny of AI spending throughout the tech sector after Alphabet raised its capital expenditure outlook, fanning concerns about the pace of returns on infrastructure expenditures.
Amazon had previously said it expected to spend around $200 billion on capital expenditures in 2026. Investors will be looking for indicators that those expenditures are driving customer demand, AI use and growth at AWS.
Outside of cloud computing, experts predict Amazon's e-commerce revenue to be $69.8 billion, while advertising revenue is expected to grow 23% to $19.3 billion.
Investors will now turn their focus to AWS growth, AI spending plans and management's outlook for the second part of the year.