Amazon reported $167.7 billion in net revenue for Q2 2025, marking a 13% year-over-year increase and beating Wall Street projections. Net income rose to $18.2 billion ($1.68 per share), significantly outperforming analysts’ expectations.
🚀 Segment Highlights & Growth Drivers
- North America sales grew 11% to $100.1 billion, while International sales rose 16% to $36.8 billion. Foreign exchange effects accounted for approximately $1.5 billion of the topline benefit.
- AWS revenue climbed 17.5% to $30.9 billion, contributing over half of Amazon’s $19.2 billion in operating income.
- Advertising revenue surged about 22–23%, with total ad sales reaching around $15.6–$15.7 billion.
Why the Stock Fell Despite Strong Results
Despite exceeding expectations, Amazon shares slid between 3% and 7% in after-hours trading after the earnings release. Investors cited concerns over:
- AWS growth trailing rivals—Microsoft Azure and Google Cloud grew faster, raising questions about Amazon’s cloud momentum.
- A conservative guidance for Q3 operating income, warning of a range between $15.5 billion and $20.5 billion, lower than anticipated levels.
AI and Operational Momentum
CEO Andy Jassy highlighted Amazon’s accelerating AI integration impacting customer experience and efficiency. Initiatives mentioned include:
- Expansion of Alexa+, shopping agents, and AI tools such as DeepFleet, Kiro, Strands, and Bedrock AgentCore to enhance automation and customer experience.
- Major AI infrastructure investments—including data center expansions and partnerships with firms like Anthropic— support future cloud and AI growth. Amazon plans $100 billion in capex for 2025.
What’s Ahead: Q3 Outlook & Strategic Risks
- Projected Q3 revenue is $174–179.5 billion, signaling continued growth of 10–13% year-over-year.
- Operating income outlook falls within the $15.5–20.5 billion range, reflecting rising investments in AI and logistics.
- Tariff impacts remain uncertain—though costs haven’t yet pressured results, trade policy changes could raise future input costs.Business Insider
✅ Quick Snapshot
| Metric | Q2 2025 Results / Growth |
|---|---|
| Total Revenue | $167.7B (+13% YoY) |
| Net Income | $18.2B (EPS $1.68) |
| North America Sales | $100.1B (+11%) |
| International Sales | $36.8B (+16%) |
| AWS Revenue | $30.9B (+17.5%) |
| Operating Income | $19.2B |
| Advertising Revenue | ~$15.6B (+22/23%) |
| Q3 Guidance | $174–179.5B revenue, $15.5–20.5B op. income |
| Share Price Movement | Down ~3–7% after hours |
📌 Why It Matters
Amazon’s Q2 results highlight strong multi-segment growth and a continued push into AI and infrastructure. However, cautious forward guidance and relatively slower AWS growth compared to peers have triggered investor concern. The balance between expansive investment and maintaining profitability will be key in coming quarters.
