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

According to Chaoxiang Research, an HSBC research report dated October 12, 2026 states that Amazon Web Services (AWS) generated $42.2 billion in second-quarter revenue, a 37% year-over-year increase marking the fastest growth in 18 quarters. AWS operating profit reached $16.6 billion, up 59.4% year-over-year. HSBC forecasts third-quarter revenue at $203.3 billion and operating profit at $27.0 billion, both exceeding the company's upper guidance targets (revenue $202.0 billion, operating profit $26.5 billion). This marks the 15th consecutive quarter the company has surpassed its operating profit guidance ceiling. HSBC considers market concerns regarding hyperscaler capital expenditures and the sustainability of AI demand to be misguided, maintaining a Buy rating with a $310 target price, which implies 22% upside from the October 8 closing price. Continued support is expected from accelerating AWS growth, AI service ARR exceeding $20 billion, and custom chip ARR surpassing $25 billion.