Amazon.com (AMZN) shares surged over 13% after reporting third-quarter 2025 earnings of $1.95 per share, a 36.4% increase year-over-year, beating estimates by 23.42%. Net sales of $180.1 billion rose 13.4%, driven by strong growth in North America, International, and AWS segments. Profitability metrics showed net income reaching $21.2 billion, up 38.2%.

Product sales increased 9.6% to $74.05 billion, while service sales jumped 16.3% to $106.1 billion. North America revenues rose 11.2%, International revenues gained 14%, and AWS revenues rose 20.2%. Third-party seller services and advertising services also saw significant growth. Physical store sales increased by 7%, while online store sales were up by 10%.

Amazon’s Prime services showed strong momentum with subscription revenues reaching $12.2 billion, a 12% increase year-over-year. Prime Video and entertainment offerings performed well, with shows like “The Summer I Turned Pretty” and NFL games attracting millions of viewers. The company also launched Luna cloud gaming service and continued expanding AI features like Alexa+.

In the third quarter, Amazon focused on AI initiatives, launching Project Rainier with Trainium2 chips and expanding models like Claude AI and Kiro. Operating expenses increased by 15%, with operating income reaching $17.4 billion, excluding special charges related to legal settlement and severance costs. North America segment operating income was $4.78 billion, International segment at $1.19 billion, and AWS segment at $11.43 billion.

As of September 30, 2025, Amazon had cash and cash equivalents of $66.9 billion, with robust cash flow generation. Operating cash flow increased by 16% to $130.7 billion, while free cash flow decreased due to increased property and equipment purchases. For the fourth quarter, Amazon expects net sales between $206 billion and $213 billion, and operating income between $21 billion and $26 billion.

Read more at Nasdaq: Amazon Q3 Earnings Beat Estimates, AWS Growth Pushes Stock Higher