Amazon.com Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.15%.
Did AMZN Beat Earnings? Q1 2025 Results
Amazon kicked off 2025 with a notably strong first quarter, posting diluted EPS of $1.59 against a consensus estimate of $1.36, a beat of 16.91%, as revenue climbed 8.6% year-over-year to $155.67 billion. The headline story behind the outperformance was a combination of accelerating cloud momentum and a sharp swing in non-operating income, with net income surging 64% to $17.13 billion. AWS was the standout engine, growing 17% to $29.27 billion in revenue while expanding its operating margin to 39.5%, as major new enterprise agreements and a rapidly expanding AI model portfolio drove demand. Advertising services added further fuel, rising 18% to $13.92 billion. Looking ahead, Amazon guided Q2 revenue of $159.00 billion to $164.00 billion, representing 7% to 11% growth, though the operating income range of $13.00 billion to $17.50 billion implies potential margin pressure, with management explicitly flagging tariff and trade policy uncertainty, geopolitical risks, and recessionary concerns as variables that could weigh on results.
- AWS revenue grew 17% YoY to $29.3 billion with 39.5% operating margin
- Advertising services grew 18% YoY to $13.9 billion
- Operating margin expanded to 11.8% from 10.7% in Q1 2024
- Net income surged 64% YoY driven by operating income growth and positive non-operating income swing
- Third-party seller services grew 6% to $36.5 billion
- Worldwide paid units grew 8% YoY
- Delivery speed improvements with another delivery speed record for Prime members
“We're pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences. From Alexa+ (our next generation of Alexa that's meaningfully smarter, more capable, and takes actions for customers), to another delivery speed record for our Prime members, to our new Trainium2 chips and Bedrock model expansion that make it easier for AWS customers to train models and run inference more flexibly and cost-effectively, to our first Project Kuiper satellites successfully launching into low earth orbit in our quest to provide broadband access to hundreds of millions of households in rural areas without it today—we're continuing to find meaningful ways to make customers' lives easier and better every day.”
Amazon CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Amazon expects net sales of $159.0 billion to $164.0 billion, representing 7% to 11% growth year-over-year, with an anticipated unfavorable foreign exchange impact of approximately 10 basis points. Operating income is expected between $13.0 billion and $17.5 billion, compared with $14.7 billion in Q2 2024. Guidance assumes no additional business acquisitions, restructurings, or legal settlements. The company flagged risks from fluctuations in foreign exchange rates, tariff and trade policy changes, geopolitical conditions, recessionary fears, inflation, and interest rates.
AMZN YoY Financials
AMZN Revenue by Segment
AMZN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.