Amazon.com, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

It's been a good week for Amazon.com, Inc. (NASDAQ:AMZN) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.1% to US$198. It looks like a credible result overall - although revenues of US$159b were what the analysts expected, Amazon.com surprised by delivering a (statutory) profit of US$1.43 per share, an impressive 25% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Amazon.com

Taking into account the latest results, the consensus forecast from Amazon.com's 62 analysts is for revenues of US$706.2b in 2025. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 27% to US$6.03. In the lead-up to this report, the analysts had been modelling revenues of US$704.2b and earnings per share (EPS) of US$5.81 in 2025. So the consensus seems to have become somewhat more optimistic on Amazon.com's earnings potential following these results.

There's been no major changes to the consensus price target of US$229, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Amazon.com analyst has a price target of US$285 per share, while the most pessimistic values it at US$180. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Amazon.com's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Compare this to the 34 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Amazon.com's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Amazon.com following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Amazon.com going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Amazon.com Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.