Amazon.com Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did AMZN Beat Earnings? Q2 2025 Results
Amazon posted a blowout second quarter, reporting earnings of $1.68 per diluted share against a consensus estimate of $1.33, a beat of 26.32%, as revenue climbed 13.3% year-over-year to $167.70 billion. The standout driver was broad-based operating leverage across all three segments, with North America operating income surging 48% to $7.52 billion and the International segment swinging to $1.49 billion in operating profit from just $273 million a year ago. AWS, meanwhile, contributed $10.16 billion in operating income on $30.87 billion in revenue, up 17% year-over-year, even as elevated infrastructure spending tied to AI and cloud capacity compressed segment margins. Advertising services was another bright spot, growing 23% to $15.69 billion, reinforcing Amazon's position as a scaled digital ad platform. Analysts tracking the stock have pointed to the company's AI investment cycle as a key long-term catalyst. Looking ahead, Amazon guided Q3 2025 net sales of $174.00 billion to $179.50 billion and operating income of $15.50 billion to $20.50 billion, though the wide range reflects lingering uncertainty around tariffs and consumer spending.
- 13% consolidated net sales growth driven by strength across all three segments
- AWS revenue grew 17% year-over-year to $30.9 billion
- Advertising services revenue surged 23% to $15.7 billion
- International segment operating income improved from $273M to $1.5B year-over-year
- North America operating margin expanded to 7.5% from 5.6%
- Worldwide paid units grew 12% year-over-year
- Favorable foreign exchange impact of approximately $1.5 billion on net sales
“Our conviction that AI will change every customer experience is starting to play out as we've expanded Alexa+ to millions of customers, continue to see our shopping agent used by many millions of customers, launched AI models like DeepFleet that optimize productivity paths for our 1M+ robots, made it much easier for software developers to write code with Kiro (our new agentic IDE), launched Strands to make it easier to build AI agents, and released Bedrock AgentCore to enable agents to be operated securely and scalably.”
Amazon CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2025, Amazon expects net sales between $174.0 billion and $179.5 billion, representing 10% to 13% growth compared with Q3 2024, with an anticipated favorable impact of approximately 130 basis points from foreign exchange rates. Operating income is expected to be between $15.5 billion and $20.5 billion, compared with $17.4 billion in Q3 2024. Guidance assumes no additional business acquisitions, restructurings, or legal settlements. The company noted results may be materially affected by fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, customer demand and spending, inflation, and interest rates.
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Figures from SEC filings and company reports. Not investment advice.