HSBC: AWS Revenue Up 37%, Amazon Expected to Exceed Q3 Guidance Ceiling

According to Chaoxiang Research, an HSBC research report dated October 12, 2026 indicates that Amazon AWS generated Q2 revenue of $42.2 billion, up 37% year-on-year, marking its fastest growth rate in 18 quarters; AWS operating profit reached $16.6 billion, up 59.4% year-on-year; HSBC forecasts Q3 revenue of $203.3 billion and operating profit of $27 billion, both surpassing the upper end of the company's guidance (revenue $202 billion, operating profit $26.5 billion); the company has now beaten the upper bound of its operating profit guidance for 15 consecutive quarters.

HSBC assesses that market concerns regarding the sustainability of capex and AI demand from hyperscalers are misplaced, maintaining a Buy rating with a price target of $310, representing a 22% upside from the October 8 closing price. Accelerating AWS growth, AI services ARR exceeding $20 billion, and custom chip ARR surpassing $25 billion provide underlying support.