Amazon reports Q3 earnings miss, shares tumble and analysts lift price targets

Amazon posted third‑quarter revenue of roughly $202 billion and operating income of $28.1 billion, missing consensus estimates. Earnings per share came in at $1.89. The results triggered a pre‑market decline of about 6‑7%, but many analysts upgraded their price targets, citing strong AWS growth and long‑term AI investments.

JPMorgan’s analyst Doug Anmuth said the company’s visibility supports a 40%+ growth outlook over the next two years, leading the firm to keep an Overweight rating and a $365 target. Bank of America raised its price objective to $317, and Morgan Stanley lifted its target to $335, indicating potential upside despite the short‑term share drop.

  • 1Operating income was $28.1 billion, up 61% year over year.
  • 2Amazon’s 2026 capital spending plan remains about $220 billion, mainly for AWS.
  • 3Earnings per share were $1.89.
  • 4Trailing 12‑month free cash flow outflow was $42.4 billion.
  • 5Premarket share price was $228.56.
  • Share decline reported as 6.3% versus nearly 7%.

Sources