11:03 AM EDT, 07/31/2026 (MT Newswires) -- Amazon.com ( AMZN ) outlined a clear path to return on invested capital, or ROIC, as it announced a higher 2026 capital expenditure plan with its strong Q2 results, Wedbush Securities said in a Friday note.

The company reported Q2 earnings of $5.75 per diluted share, up from $1.68 a year earlier, as revenue rose to $200.61 billion from $167.70 billion. Amazon ( AMZN ) raised its 2026 capex budget to $220 billion, from $200 billion previously, mainly due to higher memory costs, Wedbush noted.

Amazon ( AMZN ) delivered the "cleanest" Q2 beat and "most explicit" plan to achieve ROIC on its planned spending among its peers of hyperscalers, the investment firm said, noting the company's use of its strong cloud business as the main driver in accelerating ROIC.

The company's Amazon Web Services or AWS business continues to outperform, with a 37% revenue growth year on year in Q2 and a triple-digit increase in backlog to $496 billion, buoyed by its core and artificial intelligence services, Wedbush said. Retail, grocery and ads also support Amazon's ( AMZN ) margins, the brokerage added.

Wedbush raised its price target on Amazon ( AMZN ) to $310 from $293, with an outperform rating.

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