Amazon.com Inc

Equity Research 31 July 2026 | 12:01AM EDT

Amazon.com Inc. (AMZN) Q2’26 Review: AWS Revenue Growth & Operating Margins Support the RoIC Behind AI Investments; Overall Profit Margin Multi-Year Thesis Building in Momentum

AMZN 12m Price Target: $375.00 Price: $235.50 Upside: 59.2% BUY Eric Sheridan AMZN’s Q2’26 earnings report featured several key themes: 1) | Goldman Sachs & Co. LLC AWS’s revenue growth rate (+37%), operating margin (+39%), and Alex Vegliante, CFA momentum in their chips and AI businesses (each with a $25b | Goldman Sachs & Co. LLC annual revenue run rate) continue to demonstrate a clear signal of return on invested capital as tailwinds build around the company’s Sarah Boulos | Goldman Sachs & Co. LLC competitive positioning relative to the AI secular growth theme across compute workloads, custom silicon and increasingly enabling AI adoption through choice (with mgmt. estimating AWS could reach Key Data _____________________________________ Market cap: $2.6tr a $1tn annual run rate) ; 2) Capex (while increased from $200b to Enterprise value: $2.6tr 3m ADTV: $12.0bn $220b for 2026 to reflect inflationary component pricing) continues United States to be framed by management as a signal of both strong visibility into Americas Internet M&A Rank: 3 the return profile and supportive of the company revenue backlog GS Forecast __________________________________ (now standing at $496b +154% YoY) which will likely remain 12/25 12/26E 12/27E 12/28E

supportive of continued AWS revenue growth acceleration in the Revenue ($ mn) New Revenue ($ mn) Old 716,924.0 716,924.0 825,055.0 827,599.5 962,384.5 1,100,176.3 952,883.5 1,081,038.0 coming quarters; 3) the overall health of the Amazon Prime EBITDA ($ mn) 145,731.0 198,309.7 275,197.2 359,133.6 EBIT ($ mn) 79,975.0 109,373.3 152,250.4 197,147.8 consumer remains solid/strong and growing initiatives around a EPS ($) New wider array of supply (especially groceries and household essentials) EPS ($) Old P/E (X) and geographies (+80 new cities this quarter alone), faster delivery Dividend yield (%) -- -- -- -- times and continued adoption of Alexa for Shopping (+350m Net debt/EBITDA (X) (0.1) 0.2 0.3 0.3

customers LTM) are supportive of the company’s relative positioning 6/26 9/26E 12/26E 3/27E to be one of the strongest secular growth themes in our coverage EPS ($)

universe away from AI; & 4) advertising revenue growth (+26% YoY) GS Factor Profile ______________________________ Growth continues to be supported by both the core eCommerce operations and a growing mix from Prime Video (particular engagement with Financial Returns

live sports – i.e., NBA), programmatic advertising etc. In total, this Multiple

earnings report was fully supportive of the company’s operating Integrated momentum, its current pace/cadence of investments and the ability medium/long-term to produce sustained RoIC against those Percentile 20th 40th 60th 80th 100th

investments (across multiple areas of the business). AMZN relative to Americas Coverage AMZN relative to Americas Internet Over the short-term, we would expect investor debates will remain centered on the slope and scale of the overall AWS opportunity Source: Company data, Goldman Sachs Research estimates. See disclosures for details. (primarily in the form of AI momentum but also by a wider array of operating elements of overall workload migration toward cloud

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Amazon.com Inc. (AMZN)

Amazon.com Inc. (AMZN) Balance Sheet ($ mn) _______________________________________ BUY Rating since Sep 12, 2021 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 86,810.0 118,171.3 61,163.7 25,833.2 Accounts receivable 67,729.0…