Amazon Q3 Preview: AWS Backlog Conversion Justifies The Capex Surge

Amazon.com, Inc. is in a transitional phase, ramping capital spending to accelerate AWS backlog conversion and drive durable AI-led growth. Q3 '26 earnings are a critical inflection point; AWS revenue conversion, backlog growth, and private label retail performance are key catalysts. I reiterate a Strong Buy rating with a $376/share price target, supported by AWS margin-accretive growth, custom silicon adoption, and expanding backlog.