Amazon.com Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.07%.
Did AMZN Beat Earnings? Q4 2025 Results
Amazon matched Wall Street's expectations in the fourth quarter of fiscal 2025, reporting earnings per share of $1.95 in line with the consensus estimate, while revenue climbed 13.6% year-over-year to $213.39 billion, reflecting broad momentum across its retail and cloud businesses. The headline driver was Amazon Web Services, which grew 24%, its fastest pace in 13 quarters, helping push consolidated operating income to $24.98 billion, up from $21.20 billion a year ago, even as the quarter absorbed roughly $2.44 billion in special charges tied to an Italian tax settlement, severance costs, and asset impairments. AWS carried a 35.0% operating margin, while North America's margin widened to 9.0% from 8.0%. For the full year, net sales crossed $716.92 billion and net income reached $77.67 billion. Looking ahead, Amazon guided first-quarter 2026 revenue of $173.50 billion to $178.50 billion and operating income of $16.50 billion to $21.50 billion, with the company flagging roughly $1.00 billion in higher satellite costs and approximately $200.00 billion in planned capital expenditures across 2026 to fund AI infrastructure, custom chips, and low-earth-orbit satellite buildout.
- AWS growth accelerated to 24%, fastest in 13 quarters, driven by AI demand
- Advertising services grew 22% year-over-year to $21.3 billion
- Custom chips (Trainium and Graviton) combined annual revenue run rate exceeded $10 billion with triple-digit YoY growth
- Rufus AI shopping assistant used by 300 million+ customers, contributing nearly $12 billion in incremental annualized sales
- Same-day delivery volume grew nearly 70% YoY in the U.S., reaching nearly 100 million customers
- Favorable foreign exchange impact of $2.8 billion on Q4 net sales
- Third-party seller services grew 11% to $52.8 billion
- Amazon Connect reached $1 billion annualized revenue run rate growing over 30%
“AWS growing 24% (our fastest growth in 13 quarters), Advertising growing 22%, Stores growing briskly across North America and International, our chips business growing triple digit percentages year-over-year—this growth is happening because we're continuing to innovate at a rapid rate, and identify and knock down customer problems.”
Amazon CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Amazon expects net sales between $173.5 billion and $178.5 billion, representing 11-15% growth year-over-year, with approximately 180 basis points of favorable foreign exchange impact. Operating income is expected between $16.5 billion and $21.5 billion, compared with $18.4 billion in Q1 2025. This guidance includes approximately $1 billion of higher year-over-year Amazon Leo (satellite) costs as the company scales in 2026, as well as investment in quick commerce and sharper international pricing. The company expects to invest approximately $200 billion in capital expenditures across Amazon in 2026, primarily reflecting investments in AI infrastructure, chips, robotics, and low earth orbit satellites. Key uncertainties include tariff and trade policy changes, foreign exchange rate fluctuations, energy prices, global economic and geopolitical conditions, resource and supply volatility including for memory chips, and customer demand impacts from recessionary fears.
AMZN YoY Financials
AMZN Revenue by Segment
AMZN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.