What were the primary drivers of Amazon's sales growth in the reported period?

Amazon's sales growth was primarily driven by increased unit sales across its North America and International segments, including sales by third-party sellers, advertising sales, and subscription services. The AWS segment also contributed significantly, with growth fueled by increased customer usage.

How did Amazon's operating expenses change, and what was the impact on profitability?

Total operating expenses increased by approximately 11% in Q2 2025 compared to the prior year, largely due to increases in Cost of Sales and Technology and Infrastructure. However, the growth in net sales outpaced the increase in operating expenses, leading to a significant improvement in operating income. Technology and infrastructure costs, in particular, saw a notable increase due to investments in infrastructure and payroll for technical teams supporting new product development.

What is the company's outlook for the third quarter of 2025?

For the third quarter of 2025, Amazon expects net sales to be between $174.0 billion and $179.5 billion, representing a growth of 10% to 13% compared to the third quarter of 2024. Operating income is projected to be between $15.5 billion and $20.5 billion.

How are investments in property and equipment impacting cash flow?

Investments in property and equipment, particularly in technology infrastructure for AWS and fulfillment network expansion, are substantial. This resulted in a significant cash outflow from investing activities, with purchases of property and equipment, net of proceeds, totaling $32.2 billion in Q2 2025 and $57.2 billion for the first six months of 2025. While this impacts free cash flow, it is a strategic investment for future growth.

AMZN 10-Q Quarterly Report Q2 FY2025 — Revenue, Net Income, EPS

Summary

Amazon.com, Inc. (AMZN) reported robust financial performance for the quarter and six months ended June 30, 2025. Total net sales saw a significant increase, driven by strong performance across all segments, particularly North America and AWS. The company demonstrated improved operating income, reflecting effective cost management and continued revenue growth. Financially, Amazon maintained a strong cash position and generated substantial cash flow from operations. Investments in property and equipment, especially for AWS infrastructure, remain a key focus, leading to a significant outflow in investing activities. The company also continued to manage its debt effectively, with a decrease in total long-term debt. Investors should note the continued strength in AWS, the solid growth in the North America segment, and the company's ongoing capital expenditures to support future growth.

Financial Highlights

51 data points

Beta

Revenue

$167.70B

0.5% Gross Margin

Net Income

$18.16B

0.1% Net Margin

EPS (Diluted)

$1.68

Total Assets

$682.17B

Cash & Equivalents

$57.74B

Free Cash Flow

$32.52B

Financial Statements

Beta

Revenue	$167.70B
Cost of Revenue	$80.81B
Gross Profit	$86.89B
Operating Expenses	$148.53B
Operating Income	$19.17B
Net Income	$18.16B
EPS (Basic)	$1.71
EPS (Diluted)	$1.68
Shares Outstanding (Basic)	10.64B
Shares Outstanding (Diluted)	10.81B

Key Highlights

1Total net sales increased by 13% to $167.7 billion for Q2 2025 and by 11% to $323.4 billion for the first six months of 2025.
2Operating income saw substantial growth, reaching $19.2 billion in Q2 2025 (up from $14.7 billion in Q2 2024) and $37.6 billion for the first six months of 2025 (up from $30.0 billion in the prior year period).
3AWS segment net sales grew by 17% to $30.9 billion in Q2 2025 and by 17% to $60.1 billion for the first six months of 2025, highlighting its continued strong performance.
4North America segment net sales increased by 11% to $100.1 billion in Q2 2025 and by 9% to $193.0 billion for the first six months of 2025.
5Net cash provided by operating activities increased to $32.5 billion in Q2 2025 (from $25.3 billion in Q2 2024) and $49.5 billion for the first six months of 2025 (from $44.3 billion).
6Capital expenditures remain significant, with purchases of property and equipment, net of proceeds, totaling $32.2 billion for Q2 2025 and $57.2 billion for the first six months of 2025, largely driven by AWS infrastructure investments.
7Diluted earnings per share (EPS) increased to $1.68 in Q2 2025, up from $1.26 in Q2 2024, and $3.27 for the first six months of 2025, up from $2.24.

AMAZON COM INC Quarterly Report for Q2 Ended Jun 30, 2025

Summary

Financial Highlights

Key Highlights

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