In "Major Banks," China International Capital Corporation: Amazon's fourth-quarter performance exceeded expectations, and the long-term growth visibility of AWS has improved

CICC published a report stating that Amazon (AMZN.US) is expected to announce its Q4 fiscal year 2025 results, with total revenue projected to grow 14% year-on-year to $213.4 billion. The market consensus expects a year-on-year growth of 13% to $211.4 billion, while CICC anticipates a year-on-year growth of 13% to $212.2 billion. Operating profit is expected to grow 18% year-on-year to $25 billion, with the market consensus expecting a 17% year-on-year growth to $24.7 billion. CICC expects a year-on-year growth of 6% to $22.4 billion. Net profit is projected to grow 6% year-on-year to $21.2 billion, matching the market consensus of $21.2 billion, while CICC expects it to be $20 billion, corresponding to a diluted earnings per share of $1.95, with the market consensus at $1.97, and CICC expecting $1.83. Benefiting from the better-than-expected performance of its cloud computing business AWS, the company's revenue and profit exceeded both market and CICC expectations.

CICC believes that the medium to long-term growth visibility of AWS has improved, and Amazon's cloud supply is expected to continue to be released. They slightly raised Amazon's 2026 revenue forecast by 1.7% to $812.9 billion and introduced a 2027 revenue forecast of $890.2 billion. Considering that the company is still continuously improving internal efficiency, they raised the 2026 net profit forecast by 8.1% to $96.3 billion and introduced a 2027 net profit forecast of $115.3 billion. They maintain an "outperform the industry" rating and a target price of $280