10-QPeriod: Q3 FY2025

AMAZON COM INC Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 31, 2025For Securities:AMZN

Summary

Amazon.com Inc. (AMZN) reported strong third-quarter 2025 financial results, demonstrating continued revenue growth across its key segments. Total net sales increased by 13% year-over-year to $180.2 billion for the quarter, driven by robust performance in North America, International, and especially AWS, which saw a 20% increase in sales. Net income also saw a significant rise, reaching $21.2 billion compared to $15.3 billion in the prior year's quarter, reflecting improved operational efficiency and significant gains from investments, particularly in Anthropic. The company highlighted substantial investments in technology and infrastructure, particularly supporting AWS growth, which contributed to a notable increase in operating expenses in that segment. Despite increased operating expenses, particularly due to severance costs and an FTC lawsuit settlement impacting the North America segment, Amazon's overall operating income remained stable year-over-year at $17.4 billion, showcasing resilience and effective cost management elsewhere. The company's balance sheet remains strong, with substantial cash and marketable securities, supporting its ongoing investment in growth initiatives and potential future acquisitions.

Financial Highlights

51 data points
Beta

Revenue

$180.17B

50.8% Gross Margin

Net Income

$21.19B

11.8% Net Margin

EPS (Diluted)

$1.95

Total Assets

$727.92B

Cash & Equivalents

$66.92B

Free Cash Flow

$35.52B

Financial Statements
Beta
Revenue$180.17B
Cost of Revenue$88.67B
Gross Profit$91.50B
Operating Expenses$162.75B
Operating Income$17.42B
Net Income$21.19B
EPS (Basic)$1.98
EPS (Diluted)$1.95
Shares Outstanding (Basic)10.67B
Shares Outstanding (Diluted)10.85B

Key Highlights

  • 1Total net sales grew 13% to $180.2 billion in Q3 2025, compared to $158.9 billion in Q3 2024.
  • 2AWS segment sales increased by 20% year-over-year to $33.0 billion, demonstrating continued strong demand for cloud services.
  • 3Net income surged to $21.2 billion in Q3 2025, up from $15.3 billion in the prior year's quarter, boosted by investment gains.
  • 4Operating income remained stable at $17.4 billion for Q3 2025, despite a $2.5 billion FTC lawsuit settlement and $1.8 billion in severance costs.
  • 5Free cash flow for the trailing twelve months ended September 30, 2025, was $14.8 billion, a significant decrease from $47.7 billion in the prior year, primarily due to increased capital expenditures.
  • 6The company reported substantial capital expenditures of $38.9 billion in Q3 2025, largely for technology infrastructure and fulfillment network expansion.
  • 7Cash, cash equivalents, and marketable securities totaled $94.2 billion as of September 30, 2025, indicating a strong liquidity position.

Frequently Asked Questions

Amazon's revenue growth in Q3 2025 was driven by a 13% increase in total net sales to $180.2 billion. Key contributors included a 20% surge in AWS sales to $33.0 billion, strong performance in the North America segment (up 11% to $106.3 billion), and growth in the International segment (up 14% to $40.9 billion). Increased unit sales across retail, advertising sales, and subscription services were also significant factors.

The company recorded a $2.5 billion charge related to the settlement of a lawsuit with the FTC and approximately $1.8 billion in estimated severance costs during Q3 2025. These charges negatively impacted operating expenses, particularly within the North America segment, but overall operating income remained stable year-over-year due to strong performance in other areas and effective expense management.

Amazon continues to invest heavily in its infrastructure. Capital expenditures for the nine months ended September 30, 2025, were $97.1 billion, primarily for technology infrastructure and fulfillment network expansion. This significant investment led to a decrease in free cash flow to $14.8 billion for the trailing twelve months ended September 30, 2025, compared to $47.7 billion in the prior year. The company anticipates continued investment in these areas.

Amazon reported significant gains from its investments in private companies, primarily Anthropic. This contributed to a substantial increase in 'Other income (expense), net,' which rose to $10.2 billion in Q3 2025 from a net expense of $27 million in Q3 2024. These gains significantly boosted net income for the quarter.