Amazon Delivers Q1 'On The Steady Side Of OK,' As Analysts Highlight AWS, AI Demand

Amazon.com, Inc. AMZN announced its first-quarter results on Thursday, beating analyst estimates on the top and bottom lines. Analysts' reactions are pouring in. 

Q1 Details: Amazon reported first-quarter revenue of $155.7 billion, up 9% year-over-year, which beat a Street consensus estimate of $155.04 billion according to data from Benzinga Pro.

The company reported first-quarter earnings per share of $1.59, beating a Street consensus estimate of $1.36.

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Expert Ideas:

JPMorgan analyst Doug Anmuth highlighted Amazon’s Q1 revenue and operating income which exceeded the high end of guidance, with no significant negative impact from macroeconomic or tariff issues. He also pointed to AWS margins that reached an all-time high. 

• JPMorgan maintained Amazon stock with an Overweight and raised the price target from $220 to $225. 

Rosenblatt analyst Barton Crockett labelled Amazon's first-quarter as "on the steady side of OK," but flagged the potential for impacts from tariffs which "could start hitting soon." 

• Rosenblatt maintained a Buy rating on Amazon and raised the price target by $1 to $288. 

Needham's Laura Martin highlighted AWS's backlog which rose about 20% year-over-year to $189 billion with big client wins that included Adobe, Uber and Nasdaq. The analyst also noted that Amazon has benefited from forward buying ahead of tariff implementation.

• Needham maintained its Buy rating and $220 price target on Amazon shares. 

RBC Captial Markets analyst Brad Erickson also highlighted the growth in AWS backlog and expects acceleration in the second half of the year. 

"We come away marginally more constructive on the prospect for another go at the AWS acceleration story," Erickson said.

• RBC Capital Markets maintained an Outperform rating, but lowered its price target from $235 to $230. 

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Telsey Advisory Group analyst Joseph Feldman emphasized the company's investments in grocery, pharmacy, AI, faster delivery and rural delivery as future drivers of revenue. 

• Telsey Advisory Group maintained an Outperform rating and $225 price target on Amazon. 

Wedbush's Scott Devitt and Dan Ives said that AWS came in slightly below expectations, but noted that AI demand is strong. The analysts also pointed to forward buying ahead of tariffs and "underwhelming" Q2 guidance from the company, but said it is navigating the uncertainty well and delivering profits. 

• Wedbush maintained Amazon with an Outperform and raised its price target from $225 to $235. 

Benchmark analyst Daniel Kurnos said the third-party seller revenue and AWS misses raise questions about Amazon's China exposure. 

• Benchmark maintained a Buy rating and $260 price target on Amazon shares. 

Other Amazon analyst updates: 

• WestPark Capital analyst Curtis Shauger maintained a Buy rating and $280 price target. 
• JMP Securities analyst Nicholas Jones maintained Amazon with an Outperform and raised the price target from $240 to $250. 
• Stifel analyst Mark Kelley reiterated a Buy rating, but lowered Amazon's price target from $248 to $245. 
• Cantor Fitzgerald analyst Deepak Mathivanan reiterated Amazon with an Overweight and raised the price target from $230 to $240. 

AMZN Stock Price Action: Amazon shares were down 0.34% at $189.57 on Friday, according to data from Benzinga Pro. 

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