JPMorgan resets Amazon stock price target after earnings | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Amazon just posted what may be its best quarter ever. Revenue beat. Earnings nearly doubled the estimate. AWS hit its fastest growth rate in 15 quarters. And operating margins reached a level the company had never seen before.

Wall Street responded quickly. Five major firms raised their Amazon price targets within hours of the report. JPMorgan’s move was among the most significant.

JPMorgan raises Amazon price target

JPMorgan raised its Amazon price target to $330 from $280 while maintaining an overweight rating, according to CNBC. The new target is based on 32 times estimated 2027 GAAP EPS of $10.37, reflecting the bank’s view that Amazon’s earnings trajectory has improved enough to justify a significantly richer valuation.

The bank described Amazon as one of its top internet ideas. At a stock price near $258 at the time of the report, the new $330 target implies roughly 28% upside from that level, CNBC noted.

JPMorgan was not alone. Piper Sandler raised its target to $315 from $260. Canaccord lifted to $330 from $300. UBS moved to $333 from $304. Susquehanna raised to $325 from $300. All five firms kept bullish ratings, Quartz indicated.

What Amazon’s Q1 2026 actually showed

Amazon’s Q1 2026 results beat expectations across every major line. Net sales reached $181.5 billion, up 17% year over year, beating the Wall Street consensus of $177.3 billion.

EPS came in at $2.78, nearly doubling the $1.64 analyst estimate, Amazon’s Q1 press release shared.

A note of context on the EPS figure: It includes $16.8 billion in pre-tax gains from Amazon’s investment in Anthropic, the AI company. Strip those out, and the operational beat is still strong but more moderate than the headline implies.

Operating income reached $23.9 billion at a 13.1% operating margin, the highest Amazon has ever recorded. The company had guided a range of $16.5 billion to $21.5 billion. Amazon beat the top end of that guidance by $2.4 billion, according to the Q1 press release.

AWS revenue: the number that moved Wall Street

The AWS result is what drove the strongest analyst reaction. Amazon’s cloud division generated $37.6 billion in revenue, up 28% year over year, its fastest growth rate in 15 quarters, Amazon’s Q1 press release noted. That beat the $36.6 billion Wall Street consensus by $1 billion.

AWS operating income reached $14.2 billion at a 37.7% operating margin, up from $11.5 billion in Q1 2025. Amazon CEO Andy Jassy flagged the broader picture on the earnings call: “AWS is growing 28% on a very large base; our chips business topped a $20 billion revenue run rate growing triple digits year-over-year,” CNBC reported.

Amazon’s custom silicon business, including its Trainium and Inferentia chips, has now crossed a $20 billion annualized revenue run rate. Jassy noted that if Amazon’s chips were sold externally like other chip companies, that business would represent $50 billion in annual revenue. Amazon’s AI platform Bedrock processed more tokens in Q1 2026 than in all prior years combined.

Advertising and retail added to Amazon’s blockbuster picture

AWS was the headline, but Amazon’s other businesses performed well, too. Advertising revenue reached $17.24 billion in Q1, up 24% year-over-year, beating the $16.87 billion consensus estimate.

Advertising’s trailing 12-month revenue has now crossed $70 billion, according to Amazon’s Q1 press release.

More Wall Street

North America retail revenue reached $104.1 billion, up 12% year over year. Unit growth in Amazon’s stores hit 15%, the highest rate since the tail end of Covid-era lockdowns, Jassy said on the earnings call.

International revenue reached $39.8 billion, up 19% year over year, Amazon’s Q1 press release confirmed.

Key figures from Amazon’s Q1 2026 and analyst response:

Amazon Q1 2026 revenue: $181.5 billion, up 17% year over year, beating consensus of $177.3 billion
Amazon Q1 2026 EPS: $2.78, versus consensus of $1.64, includes $16.8 billion Anthropic investment gains
Amazon operating income: $23.9 billion at 13.1% margin, highest ever recorded
AWS Q1 2026 revenue: $37.6 billion, up 28% year over year, fastest growth in 15 quarters
AWS operating income: $14.2 billion at 37.7% operating margin
Advertising revenue: $17.24 billion, up 24% year-over-year
Amazon chips business annualized revenue run rate: $20 billion, growing triple digits year-over-year
JPMorgan new price target: $330, raised from $280, Overweight rating
Other target raises: Piper Sandler $315, Canaccord $330, UBS $333, Susquehanna $325, all maintaining bullish ratings Sources: Amazon’s Q1 press release, CNBC, Yahoo Finance

Amazon just reported, and Wall Street moved fast with a response that says more than the headline numbers.

Zamek/Getty Images

Why AMZN stock reaction was muted despite the beat

Despite the strength of the report, Amazon’s stock reaction was subdued. Shares were up just 0.77% in the session following the earnings release and dipped in after-hours trading, according to CNBC.

That reaction reflects a pattern familiar to large-cap tech investors. When a stock has already priced in strong results and when headline EPS figures include large investment gains, the market often looks through the top-line beat and focuses on what the numbers say about the underlying business trajectory.

JPMorgan’s $330 target tells investors that the firm thinks the market underreacted. AWS reaccelerating to 28% growth, operating margins hitting a record, and the chips business crossing $20 billion in run-rate revenue are structural developments, not one-quarter anomalies.

Those trends, if they hold, support a meaningfully higher valuation than where Amazon trades today.

What Amazon investors should watch from here

Amazon’s Q2 2026 guidance calls for net sales of $159 billion to $164 billion and operating income of $13 billion to $17.5 billion, according to Amazon’s Q1 press release. The guidance is below Q1’s $23.9 billion operating income, which will be a watch point for investors expecting the margin momentum to continue.

The other key variable is capital spending. Amazon continues to invest heavily in AI infrastructure, and the pace of that investment will shape how much of the revenue growth flows through to free cash flow. Jassy’s comments on Bedrock and custom silicon suggest Amazon is committing to a multiyear AI infrastructure buildout rather than pulling back.

For investors, the five analyst upgrades in a single day are a signal worth taking seriously. When JPMorgan, UBS, Piper Sandler, Canaccord, and Susquehanna all move their Amazon targets higher on the same day, it reflects broad conviction that the Q1 results represent a genuine improvement in the company’s earnings trajectory, not just a beat that will be given back in the next quarter.