Amazon.com, Inc. Q1 2025 Financial Results
Amazon.com, Inc. has released its financial results for the first quarter of 2025, ending March 31, 2025. The company reported a solid performance across its various segments, reflecting continued growth and strategic advancements.
Financial Highlights
Amazon's net sales for Q1 2025 increased by 9% to $155.7 billion, compared to $143.3 billion in Q1 2024. Excluding the $1.4 billion unfavorable impact from year-over-year changes in foreign exchange rates, net sales increased by 10%. The company's net income rose significantly to $17.1 billion, or $1.59 per diluted share, from $10.4 billion, or $0.98 per diluted share, in the same period last year. Operating income also saw an increase, reaching $18.4 billion, up from $15.3 billion in Q1 2024.
Business and Operational Highlights
Amazon's North America segment sales grew by 8% year-over-year to $92.9 billion, while the International segment sales increased by 5% to $33.5 billion, or 8% excluding changes in foreign exchange rates. The AWS segment continued its robust performance with a 17% year-over-year increase in sales, reaching $29.3 billion.
Key operational highlights include the introduction of Alexa+, the next-generation Alexa personal assistant, and the successful launch of the first Project Kuiper satellites aimed at providing broadband access to rural areas. Additionally, Amazon expanded its product offerings and partnerships, including the launch of Amazon.ie in Ireland and the introduction of Saks on Amazon.
Strategic Initiatives and Corporate Developments
Amazon announced a $4 billion investment through 2026 to expand its rural delivery network in the U.S. The company also began full-scale deployment of Project Kuiper’s satellite internet network and started testing its self-driving technology, Zoox, in Los Angeles. Furthermore, Amazon signed new AWS agreements with major companies such as Adobe, Uber, and Nasdaq, and introduced new AWS offerings, including AWS Outposts racks and servers, and new foundation models in Amazon Bedrock.
Management's Perspective
Andy Jassy, President and CEO of Amazon, expressed satisfaction with the company's performance, highlighting the pace of innovation and improvements in customer experiences. He emphasized the advancements in Alexa, delivery speed records for Prime members, and the successful launch of Project Kuiper satellites as key achievements in Q1 2025.
Future Outlook
For the second quarter of 2025, Amazon expects net sales to be between $159.0 billion and $164.0 billion, representing a growth of 7% to 11% compared to Q2 2024. Operating income is projected to be between $13.0 billion and $17.5 billion. This guidance assumes no additional business acquisitions, restructurings, or legal settlements.
SEC Filing: AMAZON COM INC [ AMZN ] - 8-K - May. 01, 2025