Amazon.com (AMZN) shares dipped in after-hours trading after reporting Q4 2025 earnings of $1.95 per share, a 5% increase but missing estimates by 1.52%. Net sales of $213.4 billion rose 14% year over year, driven by strong performance in AWS. Operating income of $25 billion included special charges, but excluding those, it would be $27.4 billion.
Product sales rose 9% to $90 billion, service sales jumped 17% to $123.4 billion. North America revenues reached $127.1 billion, international revenues hit $50.7 billion, and AWS revenues surged 24% to $35.6 billion. The company’s third-party seller services saw sales increase by 11.2% to $52.8 billion.
Amazon’s Prime services showed growth, with subscription services revenues up 14% to $13.1 billion. Prime Video had successful shows like Thursday Night Football and NBA on Prime. The company also introduced Alexa+ for U.S. customers. AWS saw significant AI initiatives with custom chips business revenue exceeding $10 billion annually.
Amazon improved delivery services, reaching new speed records globally. Same-Day Delivery saw a 70% increase in the U.S., with Prime members receiving over eight billion items same or next day. The company expanded Amazon Now delivery and Amazon Pharmacy services in various regions.
Amazon made progress on its Amazon LEO satellite network, launching 180 satellites and planning more launches in 2026 and 2027. The LEO Ultra terminal will offer high-speed broadband connectivity. The company signed agreements with major enterprises to expand its services.
Amazon’s balance sheet showed increased cash and cash equivalents, marketable securities, and long-term debt. Operating income reached $25 billion, including special charges, with segment operating income for North America, International, and AWS showing growth. The company plans to invest heavily in capital expenditures in 2026.
For Q1 2026, Amazon expects net sales between $173.5 billion and $178.5 billion, with operating income between $16.5 billion and $21.5 billion. The guidance includes higher Amazon LEO costs and investments in quick commerce. Investors reacted nervously to the planned $200 billion capital expenditure in 2026.
Read more at Nasdaq: Amazon Q4 Earnings Miss Estimates, Shares Slide on $200B Capex Plan