AMZN Reports Q3 2025 Revenue of $180.2 Billion, Net Income Up 38%

Amazon.com, Inc. (AMZN.US) announced its financial results for the third quarter ended September 30, 2025, reporting net sales of $180.2 billion. This represents a 13% increase compared to $158.9 billion in the third quarter of 2024. The company's net income for the quarter surged to $21.2 billion, an impressive 38% rise from $15.3 billion in the prior-year quarter, resulting in diluted earnings per share of $1.95. This EPS significantly exceeded the analyst estimate of $1.58.

Segment Performance Driven by AWS and International Growth

AWS segment sales saw robust growth, increasing 20% year-over-year to $33.0 billion, reflecting strong demand in AI and core infrastructure. International segment sales also performed well, rising 14% year-over-year to $40.9 billion, or 10% excluding foreign exchange rate changes. The North America segment contributed $106.3 billion in sales, an 11% increase year-over-year.

Operating income for the quarter remained stable at $17.4 billion. However, excluding special charges of $2.5 billion related to a legal settlement and $1.8 billion in estimated severance costs, operating income would have been $21.7 billion. AWS segment operating income alone was $11.4 billion, up from $10.4 billion in the third quarter of 2024, indicating continued profitability in its cloud services.

Strategic Investments in AI and Operational Efficiency

Amazon highlighted significant advancements in AI, with strong adoption of its custom AI chip, Trainium2, which grew 150% quarter over quarter and is fully subscribed. The company also launched Project Rainier, a massive AI compute cluster, to build and deploy advanced AI models. These investments underscore Amazon's commitment to leveraging AI across its businesses, from cloud services to customer-facing applications.

The company continues to innovate in its fulfillment network, aiming to deliver to Prime members at faster speeds and expanding same-day delivery of perishable groceries to over 2,300 communities by year-end. Amazon also reported an increase in the number of rural communities with access to Same-Day and Next-Day Delivery by 60% in the past four months. Additionally, operating cash flow for the trailing twelve months increased 16% to $130.7 billion.

Fourth Quarter 2025 Outlook

For the fourth quarter of 2025, Amazon anticipates net sales to be between $206.0 billion and $213.0 billion, representing a growth of 10% to 13% compared to the fourth quarter of 2024. This guidance includes an anticipated favorable impact of approximately 190 basis points from foreign exchange rates. Operating income is projected to be between $21.0 billion and $26.0 billion.