Amazon's Q1 2026 earnings: AWS growth and milestones

What happened: Amazon's Q1 2026 earnings saw robust growth, particularly in its cloud computing arm, AWS. AWS revenue grew 28%, its fastest pace in 15 quarters, and crossed a $20 billion annual run rate with its custom chips. Despite this, Amazon's stock sits 12% below its 52-week high. Analysts remain bullish, with price targets implying 19% to 57% upside.

Market impact: The strong performance in AWS has bolstered Amazon's overall valuation, benefiting investors who have been bullish on the stock. The growth in AWS has also driven up analyst price targets, with some seeing potential for significant returns. Meanwhile, Amazon's e-commerce operations continue to see efficiency gains, further bolstering its core business.

What to watch next: Amazon's Q2 earnings report, scheduled for late July, will provide insight into whether the company can maintain its growth momentum. Additionally, investors will be watching Amazon's Prime Day event, typically held in July, to gauge the impact of any shifts in timing on Q3 comparisons. Lastly, the evolution of Amazon's AI and chip businesses will be crucial to monitor, as these areas have shown significant promise.