Amazon.com Inc
Q3 2025 Earnings
Net income includes pre-tax gains of $9.5 billion in non-operating income from investments in Anthropic, PBC.
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did AMZN Beat Earnings? Q3 2025 Results
Amazon delivered a strong third quarter, posting earnings of $1.95 per diluted share against a consensus estimate of $1.54, a beat of 26.62%, while revenue climbed 13.4% year-over-year to $180.17 billion. The headline profit figure, however, carried notable asterisks in both directions: net income of $21.19 billion was substantially lifted by $9.50 billion in pre-tax gains tied to Amazon's investment in Anthropic, while reported operating income of $17.42 billion was weighed down by a $2.50 billion FTC legal settlement and $1.80 billion in severance charges, leaving it essentially flat year-over-year. Strip out those items and operating income would have reached $21.70 billion. The quarter's clearest organic momentum came from AWS, which re-accelerated to 20% growth and generated $33.01 billion in revenue, fueled by surging AI infrastructure demand including full subscription of Amazon's Trainium2 chip. Advertising services also grew 24% to $17.70 billion. Looking ahead, Amazon guided Q4 revenue to $206.00 billion to $213.00 billion, with operating income between $21.00 billion and $26.00 billion.
- AWS re-accelerated to 20% YoY growth driven by strong AI and core infrastructure demand
- Advertising services grew 24% YoY, the fastest-growing revenue line
- AI driving meaningful improvements across all business segments
- Fulfillment network innovation improving delivery speeds and expanding Same-Day Delivery
- Trainium2 custom AI chip fully subscribed, grew 150% quarter-over-quarter
- 250 million customers using Rufus AI shopping assistant, with 60% higher purchase completion
- Over 1.3 million independent sellers using genAI tools for product listings
- Worldwide paid units grew 11% YoY
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business. AWS is growing at a pace we haven't seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we've been focused on accelerating capacity – adding more than 3.8 gigawatts in the past 12 months. In Stores, we continue to realize the benefits of innovating in our fulfillment network, and we're on track to deliver to Prime members at the fastest speeds ever again this year, expand same-day delivery of perishable groceries to over 2,300 communities by end of year, and double the number of rural communities with access to Amazon's Same-Day and Next-Day Delivery.”
Amazon CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Amazon expects net sales between $206.0 billion and $213.0 billion, representing 10% to 13% growth compared with Q4 2024, with an anticipated favorable impact of approximately 190 basis points from foreign exchange rates. Operating income is expected to be between $21.0 billion and $26.0 billion, compared with $21.2 billion in Q4 2024. This guidance assumes no additional business acquisitions, restructurings, or legal settlements. The company flagged risks including fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, customer demand and spending impacts from 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.