Amazon reported strong Q1 2025 results, with revenue rising 9% year-over-year to $155.7 billion, surpassing analyst expectations of $155 billion. Earnings per share (EPS) came in at $1.59, exceeding the projected $1.36. Net income increased to $17.1 billion, up from $10.4 billion in the same quarter last year. Operating income also saw a significant rise, reaching $18.4 billion compared to $15.3 billion in Q1 2024.
Breaking down the revenue by segments:
- North America: $92.9 billion, up 8% year-over-year.
- International: $33.5 billion, a 5% increase.
- Amazon Web Services (AWS): $29.3 billion, marking a 17% growth.
Operating income for these segments were:
- North America: $5.8 billion.
- International: $1.0 billion.
- AWS: $11.5 billion.
For Q2 2025, Amazon projects net sales between $159.0 billion and $164.0 billion, representing a 7% to 11% increase year-over-year. Operating income is expected to range from $13.0 billion to $17.5 billion, compared to $14.7 billion in Q2 2024. This guidance reflects uncertainties due to foreign exchange rates and other macroeconomic conditions.
Despite the strong Q1 performance, Amazon’s stock experienced a decline of nearly 5% in after-hours trading, influenced by the cautious Q2 outlook. Year-to-date, the stock has decreased by approximately 17%, amid concerns over consumer spending and broader economic indicators.
CEO Andy Jassy addressed potential challenges from tariffs, expressing confidence in Amazon’s ability to manage economic volatility due to its vast inventory and direct sourcing strategies. He emphasized the company’s focus on maintaining low prices and highlighted strengths in grocery sales and other essential goods.
Segment Revenue Breakdown:
| Segment | Revenue ($B) | Percentage |
|---|---|---|
| North America | 92.9 | 60% |
| International | 33.5 | 21% |
| AWS | 29.3 | 19% |
Revenue and EPS Comparison:
| Metric | Q1 2024 | Q1 2025 |
|---|---|---|
| Revenue ($B) | 143.3 | 155.7 |
| EPS ($) | 0.98 | 1.59 |
