Amazon has reported a stellar performance for the quarter ended September 30, 2025, announcing a record revenue of approximately $180 billion, marking a 13% year-on-year growth. The company’s earnings per share (adjusted) reached $1.95, beating analyst expectations of ~$1.57.
Key Drivers & Highlights
- Its cloud computing arm, Amazon Web Services (AWS), delivered ~20% revenue growth to ~$33 billion in the quarter.
- The advertising business also jumped, with ad revenue reaching ~$17.7 billion (≈24% YoY growth) as Amazon boosts its monetisation of its platform.
- Amazon forecast Q4 revenues in the range of $206-213 billion, emphasising the upcoming holiday season as a strong growth window.
- The strong top-line performance comes even as Amazon continues heavy investment in AI infrastructure and data-centre build-out, which is expected to support long-term growth.
Why This Matters
- Breaking the $180 billion mark signals Amazon’s scale across retail, cloud, and advertising is growing in strength.
- The re-acceleration of AWS growth helps allay investor concerns that Amazon’s cloud business was losing momentum to rivals.
- Advertising growth shows Amazon is diversifying further beyond e-commerce and cloud, growing its high-margin business lines.
- The Q4 guidance suggests Amazon is confident entering the holiday season, a critical period for the company.
Challenges & Considerations
- Despite strong revenue growth, margin pressures remain due to high infrastructure spending, especially in AI and data-centres. For example, free cash-flow compressed due to large capex. GeekWire
- Competition in cloud and advertising remains intense with major players like Microsoft Corporation and Alphabet Inc. pushing hard. AWS 20% growth is solid but trailing some rivals. theguardian.com
- Consumer-facing retail still faces macroeconomic headwinds (inflation, consumer cautiousness), which could affect future growth.
Outlook & What to Watch
- Monitor Q4 results: whether Amazon can deliver according to or above its $206-213 billion guidance.
- Track AWS growth rates and margin trends: sustaining or improving 20%+ growth will bolster confidence.
- Observe advertising business expansion and margin contribution: this is a growth lever with high potential.
- Keep an eye on capex and investment returns: Amazon’s heavy infrastructure build-out must eventually translate into stronger profitability.
Summary
Amazon’s Q3 performance — revenue reaching ~$180 billion and growth across cloud, advertising and retail — underscores the company’s strong position and strategic momentum heading into the holiday quarter. While sizable investments and competitive pressures remain, the results are a positive signal for Amazon’s long-term trajectory.
