Amazon Q2 Earnings: AI, Tariffs, and Cloud Business in Focus

Amazon is set to report Q2 earnings after the market close on Thursday. Analysts expect EPS of $1.31 and revenue of $161.94 billion. Tariffs and recession fears have been a concern, but analysts say the tariff backdrop has become more manageable. Amazon's e-commerce business is expected to post $58.98 billion in sales, while its cloud business, AWS, is expected to generate $30.8 billion in revenue.

Amazon is poised to release its Q2 earnings report after the market closes on Thursday, July 2, 2025. Analysts expect the company to report an EPS of $1.31 and revenue of $161.94 billion. While tariffs and recession fears have been a concern, analysts believe the tariff backdrop has become more manageable [1].

The e-commerce business is expected to post $58.98 billion in sales, while Amazon Web Services (AWS), the company's cloud business, is anticipated to generate $30.8 billion in revenue. These figures reflect Amazon's ongoing efforts to diversify its revenue streams and mitigate risks associated with economic uncertainties.

Key takeaways from the earnings report will likely include:

1. E-commerce Performance: Amazon's e-commerce business remains a significant driver of revenue. Analysts will closely monitor sales figures and growth rates to gauge the company's ability to maintain market share and customer loyalty.

2. AWS Growth: AWS continues to be a high-growth segment for Amazon. Revenue projections for AWS will provide insights into the company's ability to capitalize on the growing demand for cloud services.

3. Operational Efficiency: Amazon's operational efficiency will be under scrutiny. The company's ability to manage costs and maintain profitability will be critical, especially in an uncertain economic environment.

4. Tariff Impact: While analysts believe the tariff backdrop has become more manageable, any changes in tariff policies or trade agreements could still impact Amazon's operations and financial performance.

Investors and financial professionals should pay close attention to the earnings call and subsequent analyst commentary for further insights into Amazon's strategic direction and future prospects.

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-regional-management-beats-q2-2025-eps-expectations-93CH-3812379