Amazon Q3 2025 Earning
Amazon delivered a strong 3Q2025 results, beating analyst expectations across the board.
Amazon delivered a strong 3Q2025 results, beating analyst expectations across the board.
📌Revenue $180.2b + 13% YoY 🟢 VS $158.9 billion in Q3 2024
📌GP $91.5b +17% margin 51% +175 bps
📌EBIT $17.4b +0% 🟡 margin 10% -129 bps🔻
📌EBIT $21.7b +25% 🟢margin 12% +110 bps🟢
📌Net Inc $21.2b +38.6%🟢margin 12% +41 bps 🟢This includes a $9.5b pre-tax gain from Amazon’s investment in Anthropic.
📌OCF $26b -27% 🟡margin 14% -795 bps 🟡
📌FCF $4.7b +262%🟢margin 3% +179 bps🟢
For Q4 2025, Amazon guided net sales between $206 billion and $213 billion, +10-13% growth and slightly below the analyst consensus of $208.1 billion.
AWS (Amazon Web Services): This segment delivered the standout performance, with revenue accelerating 20% to $33.0 billion—the fastest growth rate since 2022, significantly outpacing the prior quarter’s 17.5% growth and exceeding the analyst consensus of $32.4 billion.
AWS generated $11.4 billion in operating income, up 9.6% from $10.4 billion in Q3 2024, though operating margins compressed 340 bp to 34.5% due to massive capacity investments.
AWS now represents 18% of total revenue but contributes approximately 60% of operating income, underscoring its strategic importance
Capital expenditure reflects Amazon’s aggressive bet on AI infrastructure.
Q3 saw capex of $34.2 billion, with the year-to-date total reaching $89.9 billion.
Amazon expects full-year 2025 capex of approximately $125 billion, expected to increase further in 2026.
This 55% year-over-year surge in capex is heavily weighted toward AWS capacity to support AI demand, including the $11 billion Project Rainier, designed specifically to train and operate Anthropic’s Claude AI models using Amazon’s custom Trainium 2 chip.
AWS is aggressively deploying custom silicon, with Trainium 2 chips now representing a multi-billion-dollar business growing 150% QoQ.
Anthropic is committed to using 1 million Trainium 2 chips by year-end, scaling from the current 500,000 deployed for Claude training.
Amazon’s agentic commerce initiatives, including Rufus shopping assistant and “Buy for Me” features, are gaining traction as the company seeks to compete in AI-driven commerce experiences.
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy, President and CEO, Amazon.
“AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity – adding more than 3.8 gigawatts in the past 12 months.” Andy Jassy, CEO
Year-to-date, Amazon’s stock has risen only 4.9%, significantly underperforming the Nasdaq’s 24% gain, positioning the company as the laggard among the Magnificent Seven tech stocks.
However, shares are up by more than 10% in after-hours trading. A strong Q3 beat could mark a shift in investor sentiment. AI & AWS growth will drive it through.