| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 20.7x | 18.2x | Bottom tier | |
Growth | 83 | 15.8% | 7.1% | Top tier | |
Quality | 65 | 8.6% | 4.5% | Around median | |
Safety | 73 | 0.6x | 2.6x | Top tier | |
Capital Return | 26 | — | 2.10% | Bottom tier | |
Momentum | 74 | 15.5% | 2.9% | Top tier | |
Sentiment | 61 | 44 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Amazon.com, Inc. operates through an ecosystem combining e-commerce, logistics, subscriptions, cloud computing, and advertising. In fiscal year 2026 Q2, the North America segment generated $116.2 billion in revenue, the International segment $42.2 billion, and AWS approximately $42.2 billion; advertising also generated $19.8 billion, with 26% year-over-year growth. The company supports its stores business through Prime, rapid delivery, grocery, and Amazon Pharmacy, while AWS sells cloud infrastructure and artificial intelligence services, including Trainium, Graviton, Amazon Bedrock, Amazon Q, and Kiro.
In fiscal year 2026 Q2, revenue increased 20% year over year to $200.6 billion, and gross profit reached $104.8 billion, equivalent to a gross margin of approximately 52.2%. Operating income rose 43% to $27.5 billion, while net income reached $62.6 billion and diluted earnings per share were $5.75. However, net income included $53.4 billion in pre-tax non-operating gains related to Anthropic investments, while operating income also benefited from approximately $1.2 billion split equally between a customs duty refund and a change in the fair value of energy contracts.
AWS was the most profitable driver in fiscal year 2026 Q2; its revenue grew 36.7% to $42.2 billion, and its operating income reached $16.6 billion at a 39.4% margin, representing approximately 60% of the group’s operating income. The North America segment generated operating income of $9.1 billion at a 7.9% margin, compared with $1.7 billion and a 4.1% margin for the International segment. On a trailing twelve-month basis in fiscal year 2026, revenue reached $775.7 billion and net income $135.3 billion, but comparing accounting earnings with cash flow remains important because of the Anthropic gains and elevated capital expenditures.
The analysts’ average price target is $329.07, within a range extending from $300 to $390, with a consensus rating of “Buy”; the average exceeds the 52-week range high of $287.2, and even the lowest target exceeds that high. The 52-week range extends from $196 to $287.2, and the available information does not provide a published price-to-earnings ratio that can be used to assess the extent of the valuation, while accounting earnings per share require caution because they included substantial gains related to Anthropic. The target range reflects optimism about AWS and artificial intelligence growth, but free cash flow pressure from expected capital expenditure of $220 billion and cost and regulatory risks justify not treating the consensus target as a guaranteed outcome.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
AWS was the most important driver, generating revenue of $42.2 billion with 36.7% year-over-year growth. Its operating income reached $16.6 billion at a 39.4% margin, equivalent to nearly 60% of the group’s operating income. Its annualized revenue run rate also reached $169 billion, and the contractual commitments backlog reached $496 billion, with growth exceeding 100% year over year.
No. Net income reached $62.6 billion and diluted earnings per share were $5.75 in fiscal year 2026 Q2, but the results included $53.4 billion in pre-tax non-operating gains related to Anthropic investments. Operating income also benefited from approximately $600 million from a customs duty refund and $600 million from a change in the fair value of energy contracts. Therefore, operating income of $27.5 billion, alongside segment results, provides a clearer view of underlying performance than net income alone.
Amazon is directing most of the investment toward AWS and artificial intelligence to meet demand that exceeds available capacity, and it raised the estimate from approximately $200 billion to $220 billion because of higher memory costs. Cash capital expenditure reached $53.1 billion in fiscal year 2026 Q2, while management said that most fiscal year 2027 capacity is reserved and that it has meaningful reservations for fiscal year 2028. The company explains that servers and networking equipment take slightly less than three years to break even, while data centers can be used for more than 30 years, but the current construction is pressuring free cash flow in the nearer term.
Automated analysis for informational purposes only — not investment advice.
The annualized revenue run rate of the artificial intelligence business exceeded $25 billion in fiscal year 2026 Q2, with growth exceeding 100% year over year. The chip business also exceeded an annualized revenue run rate of $25 billion at a similar growth rate, supported by Trainium and Graviton. Anthropic and OpenAI have multi-year, multi-gigawatt commitments for Trainium, while Graviton is used by approximately 98% of the top 1,000 EC2 customers.
Advertising generated $19.8 billion in fiscal year 2026 Q2, up 26% year over year, and Sponsored Products remained its largest offering. In stores, North America revenue reached $116.2 billion, with 16% growth, and International revenue reached $42.2 billion, with 15% growth excluding currency effects. The number of monthly active fresh-product customers also increased by more than 50% since the beginning of fiscal year 2026, and same-day delivery orders that included fresh products contained more than three times as many units.
Amazon expects net sales between $197 billion and $202 billion and operating income between $22.5 billion and $26.5 billion in fiscal year 2026 Q3. Management explained that the shift of Prime Day to fiscal year 2026 Q2 lowers the year-over-year comparison, and that growth would have been approximately 400 basis points higher after excluding the event’s impact from both periods. The expected negative currency impact of approximately 80 basis points, ongoing fuel, transportation, and memory costs, and AWS’s ability to maintain its growth and margins amid elevated capital expenditures should also be monitored.
