Amazon.com's (AMZN) 2026 Could Mark an AI Script Flip, Evercore Says

Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 AI Stocks Analysts Are Watching. On February 2, Evercore ISI analyst Mark Mahaney reiterated an Outperform rating on the stock with a $335.00 price target. The firm sees a potential script flip for AMZN from AI laggard to AI winner by 2026.

Evercore ISI expects Amazon to deliver results in line with market expectations when it reports on February 5, with Q4 revenue estimates of $211 billion (up 12% year-over-year) and operating income of $24.6 billion (11.7% margin), both of whom appear reasonable based on intra-quarter data points.

Retail spending trends appear supportive, while Amazon-specific sales indicators appear softer. The stock is still seen as attractive heading into the print, with recent read-throughs from Azure results and third party retail data dampening sentiment.

“Fundamentally, we see in AMZN ’26 a potential acceleration/expansion story (revenue growth acceleration & operating margin expansion). And narratively, we see in AMZN ’26 the potential for the script to flip from AI Laggard to AI Winner – in a manner not too dissimilar to GOOGL ’25 (tho not as dramatic.)”

The firm said that AMZN is its number one Large Cap Net Long. For the first quarter of 2026, consensus estimates are seen as achievable, with greater upside potential on operating income as revenue.

Investors will be particularly looking out for evidence that AWS growth can continue to accelerate with clear backlog, the sustainability of retail unit-economics improvements, durability of advertising growth, and updated guidance on capital spending and capacity expansion.

The firm models North America Retail Revenue of $127.7 billion (up 10.5% year-over-year), AWS Revenue of $34.6 billion (up 20% year-over-year), and total operating margin of 11.9% for Q4, which is slightly higher than the Street’s expectation of 11.7%.

“FCF & CapEx Trends: We are modelling $31.6B in FCF for FY25, implying a 4.4% FCF Margin. In terms of CapEx, we are modelling $125.17B for FY25 (+61% Y/Y), slightly higher than the Street.”

Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.

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Disclosure: None. This article is originally published at Insider Monkey.