01—Abstract
Summary
Summary of the 10-Q filed May 2, 2025. Cited figures are marked; the original filing is the authoritative source.
Amazon.com, Inc. reported robust financial performance for the quarter ending March 31, 2025.
Total net sales increased by 9% year-over-year to $155.7 billiona, driven by strong growth across all segments, particularly AWS and North America retail. Net income saw a substantial rise of 64% to $17.1 billion, or $1.59 per diluted share, indicating improved profitability and operational efficiency. The company demonstrated strong operational execution with significant increases in operating income for North America, International, and AWS segments.
Investments in technology and infrastructure continue to be a priority, reflecting Amazon's commitment to innovation and future growth, especially within AWS. Despite increased capital expenditures, the company maintained a healthy cash flow from operations and ended the quarter with a strong liquidity position.
02—Key points
Key Highlights
- Total net sales grew 9% to $155.7 billion, with North America up 8%, International up 5%, and AWS up 17%.
- Net income surged 64% to $17.1 billion, with diluted earnings per share at $1.59.
- Operating income increased significantly across all segments: North America up 17%, International up 12%, and AWS up 23%.
- AWS continues to be a major growth driver, with net sales increasing 17% and operating income up 23%.
- Investments in property and equipment increased significantly to $27.4 billion in Q1 2025, up from $14.6 billion in Q1 2024, reflecting strategic growth initiatives.
- The company reported a substantial increase in cash provided by investing activities, primarily driven by purchases of marketable securities and capital expenditures.
- Free cash flow for the trailing twelve months ended March 31, 2025, was $25.9 billion, down from $50.1 billion in the prior year, reflecting increased capital expenditures.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Amazon.com Inc kept $0.11.
- Revenue$155.67B100.0%
- Cost of revenue−$76.98B49.4%
- Gross profit$78.69B50.6%
- Operating costs−$60.29B38.7%
- Operating income$18.41B11.8%
- Interest, other & tax−$1.28B0.8%
- Net income$17.13B11.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 2, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $155.67B$143.31B | +8.6% |
| Cost of Revenue | $76.98B$72.63B | +6.0% |
| Gross Profit | $78.69B$70.68B | +11.3% |
| Operating Expenses | $137.26B$128.01B | +7.2% |
| Operating Income | $18.41B$15.31B | +20.2% |
| Net Income | $17.13B$10.43B | +64.2% |
| EPS (Basic) | $1.62$1.00 | +62.0% |
| EPS (Diluted) | $1.59$0.98 | +62.2% |
| Shares Outstanding (Basic) | 10.60B10.39B | +2.0% |
| Shares Outstanding (Diluted) | 10.79B10.67B | +1.2% |
05—Questions
Frequently Asked Questions
What was Amazon's net sales and net income for the quarter ended March 31, 2025?
For the quarter ended March 31, 2025, Amazon reported total net sales of $155.7 billion, an increase of 9% compared to the prior year. Net income was $17.1 billion, a significant increase of 64% from $10.4 billion in the same period last year. Diluted earnings per share were $1.59.
How did the different business segments perform?
All three segments showed growth. North America net sales increased by 8% to $92.9 billion. International net sales grew by 5% to $33.5 billion. Amazon Web Services (AWS) demonstrated particularly strong performance with net sales up 17% to $29.3 billion.
What is the company's outlook for the second quarter of 2025?
Amazon expects second quarter 2025 net sales to be between $159.0 billion and $164.0 billion, representing growth of 7% to 11% compared to the second quarter of 2024. Operating income is expected to be between $13.0 billion and $17.5 billion.
What are the key drivers behind the significant increase in investments in property and equipment?
The substantial increase in investments in property and equipment, particularly in AWS ($20.5 billion in Q1 2025 vs. $7.9 billion in Q1 2024), reflects Amazon's strategic focus on expanding its technology infrastructure to support continued growth in AWS and other Amazon businesses, including initiatives related to artificial intelligence and machine learning.
06—Continue