Key TakeawaysAmazon’s Q2 2026 financial results are scheduled for July 30 following market closeEvercore ISI maintains Outperform designation with $315 target; shares currently hover near $231Analyst consensus projects $196 billion in Q2 revenue, marking 17% annual growthMarket attention centers on AWS expansion, profitability metrics, and $200 billion capital spending planMorningstar assigns AMZN a four-star ranking with $280 fair value, considering shares moderately undervaluedAmazon is set to release second-quarter 2026 financial results this Thursday, July 30, following the conclusion of regular trading hours. With shares positioned around $231, investor attention remains heightened.Amazon.com, Inc., AMZNOn Monday, Evercore ISI reaffirmed its Outperform stance while maintaining a $315 price objective. The investment firm views the consensus Q2 revenue projection of $196 billion as reasonable, with greater potential for upward surprises than disappointments.The $196 billion revenue forecast reflects 17% growth compared to last year and 9% expansion from the previous quarter. Over the trailing twelve-month period, Amazon’s revenue climbed 14% to reach $743 billion.Evercore ISI highlighted Prime Day as a significant short-term catalyst. This year’s shopping event, held on July 12, is projected to contribute between $5 billion and $10 billion in additional revenue during the second quarter.With Prime Day occurring in Q2 this year instead of Q3, Evercore ISI reduced its third-quarter revenue projection by 7% to $194 billion. This adjustment places the firm’s estimate below the consensus forecast of $204 billion for Q3.The investment firm also lowered its Q3 operating income forecast by 7% to $24.2 billion, marginally beneath the consensus expectation of $25.1 billion. The revisions resulted in only a modest 1% decrease to full-year 2026 projections.AWS Performance and Profitability Take PriorityAWS continues to dominate the narrative as earnings approach. Market observers are scrutinizing revenue expansion, infrastructure investments, order backlog trends, and profitability metrics.AWS profitability serves as the primary engine for Amazon’s consolidated margin performance. Analysts express concern that substantial depreciation expenses tied to ongoing infrastructure expansion may temporarily compress AWS margins.Amazon has simultaneously increased investment in Project Leo, its satellite communications project. This expenditure has created margin headwinds and was specifically mentioned as a challenge during first-quarter guidance commentary.Regarding capital expenditures, investors will assess whether Amazon remains on track to achieve its $200 billion spending commitment for 2026. Since Amazon provides quarterly guidance only, any forward-looking statements about Q3 will receive intense scrutiny.Morningstar’s AssessmentMorningstar maintains a four-star evaluation on AMZN with a $280 fair value determination. The research firm considers the shares moderately undervalued at present price levels.Morningstar anticipates AWS revenue will expand at a 20% compound annual growth rate over the coming five years. The advertising segment is forecast to grow at an 18% annual pace during the identical timeframe.The firm’s model shows total company revenue advancing at an 11% CAGR through 2030. GAAP operating margin is projected to expand from 11% in 2025 to approximately 14% by 2030.Amazon concluded 2025 holding $123 billion in cash and marketable securities compared to $65.6 billion in outstanding debt. Morningstar grants the company a Wide economic moat designation.BofA Securities similarly reaffirmed a Buy recommendation before earnings, increasing its Q2 revenue forecast to $198.8 billion, surpassing consensus estimates. The firm established its Q2 EBIT projection at $24.1 billion.Current options market activity suggests a potential share price movement of 6.4% following the earnings announcement.The post Amazon (AMZN) Earnings Preview: What to Expect Before Thursday’s Q2 Report appeared first on Blockonomi.