From Nasdaq: 2025-05-02 15:00:00

Amazon.com (AMZN) reported first-quarter 2025 earnings of $1.59 per share, a 40.7% increase from last year, exceeding the Zacks Consensus Estimate by 17.78%. Net income rose 64.4% to $17.1 billion, with net sales of $155.7 billion, up 9% year over year. Top-line growth was driven by strong momentum in North America and International segments, with AWS investments in generative AI aiding cloud customer growth.

Product sales increased 5% to $63.9 billion, while service sales jumped 11.3% to $91.6 billion. North America revenues rose 7.6% to $92.88 billion, International revenues gained 4.9% to $33.5 billion, and AWS revenues rose 16.9% to $29.3 billion. Amazon’s continued focus on subscription services, advertising, and physical store sales contributed to its overall growth.

AWS signed new agreements with major companies and reported triple-digit growth in its AI business, reaching a multi-billion-dollar annual revenue run rate. The company introduced new AI capabilities like Amazon Nova Premier and Amazon Nova Sonic, emphasizing its commitment to comprehensive AI development. Other notable announcements included a satellite launch for Project Kuiper and a joint venture for the James Bond film franchise.

Operating expenses increased 7.2% to $137.26 billion, with operating income up 20.2% to $18.4 billion. Amazon’s balance sheet showed $66.2 billion in cash and cash equivalents, $28.3 billion in marketable securities, and $53.3 billion in long-term debt. Operating cash flow increased 15% to $113.9 billion for the trailing 12 months. However, the company’s free cash flow decreased by 48% compared to the previous period.

Amazon’s stock dipped in after-hours trading due to mixed guidance for the second quarter. The company expects operating income between $13 billion and $17.5 billion, below the average estimate of $17.7 billion. For the second quarter, net sales are forecasted to be between $159.0 billion and $164.0 billion, representing growth of 7-11% compared to the same period in 2024. Foreign exchange rates are expected to have a slight unfavorable impact on these figures.



Read more at Nasdaq: Amazon Q1 Earnings Beat Estimates, Stock Falls on Mixed Guidance