01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Total 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.
- Operating 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).
- AWS 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.
- North 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.
- Net 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).
- Capital 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.
- Diluted 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Amazon.com Inc kept $0.11.
- Revenue$167.70B100.0%
- Cost of revenue−$80.81B48.2%
- Gross profit$86.89B51.8%
- Operating costs−$67.72B40.4%
- Operating income$19.17B11.4%
- Interest, other & tax−$1.01B0.6%
- Net income$18.16B10.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $167.70B$147.98B | +13.3% |
| Cost of Revenue | $80.81B$73.78B | +9.5% |
| Gross Profit | $86.89B$74.19B | +17.1% |
| Operating Expenses | $148.53B$133.31B | +11.4% |
| Operating Income | $19.17B$14.67B | +30.7% |
| Net Income | $18.16B$13.48B | +34.7% |
| EPS (Basic) | $1.71$1.29 | +32.6% |
| EPS (Diluted) | $1.68$1.26 | +33.3% |
| Shares Outstanding (Basic) | 10.64B10.45B | +1.8% |
| Shares Outstanding (Diluted) | 10.81B10.71B | +0.9% |
05—Questions
Frequently Asked Questions
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.
06—Continue