Amazon.com 2025 Q3 Earnings Beats Estimates with 38.2% Net Income Growth

Amazon.com (AMZN) reported Q3 2025 earnings that surpassed expectations, with revenue rising 13.4% year-over-year to $180.17 billion and net income surging 38.2% to $21.19 billion. The company’s guidance aligned with market optimism, citing strong AWS growth and operational efficiency as key drivers.

Revenue

Amazon’s total revenue for Q3 2025 reached $180.17 billion, reflecting robust performance across its business segments. Online stores generated $67.41 billion in revenue, while third-party seller services contributed $42.49 billion. Advertising services saw a notable $17.70 billion in revenue, and subscription services added $12.57 billion. The company’s AWS division, a critical growth engine, delivered $33.01 billion in revenue, driven by increased demand for cloud computing and AI infrastructure. Physical stores accounted for $5.58 billion, and other segments rounded out the total with $1.42 billion.

Earnings/Net Income

Amazon’s earnings per share (EPS) rose 35.6% to $1.98 in Q3 2025, up from $1.46 in the prior year. The company’s net income reached a record $21.19 billion, marking a 38.2% increase from $15.33 billion in Q3 2024. This strong earnings performance underscores the company’s ability to leverage scale and operational efficiencies, with the EPS growth representing a significant positive indicator for investors.

Price Action

The stock price of Amazon.com edged down 1.85% during the latest trading day, edged up 0.80% during the most recent full trading week, and edged up 1.50% month-to-date.

Post-Earnings Price Action Review

Amazon’s stock price surged 9.1% in after-hours trading following the Q3 earnings report, with revenue and EPS both exceeding estimates. A 30-day holding period analysis suggests a potential 10.2% return, assuming a purchase at $229.77 and a sale at $253.00 by November 29, 2025. This performance aligns with the company’s strategic investments in AWS and AI, which drove the earnings beat. However, long-term validation of the “buy-on-revenue-beat” strategy requires more historical data, as the Q3 2025 example is the only available instance in the provided references.

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CEO Commentary

CEO Andrew Jassy highlighted Q3 revenue of $180.2 billion, driven by 12% year-over-year growth. He emphasized AWS’s 20.2% growth, attributing it to AI workloads and data center expansion. Jassy also underscored investments in rural delivery networks and AI-driven tools like Rufus, signaling confidence in Amazon’s long-term growth trajectory.

Guidance

Amazon provided 2025 full-year cash CapEx guidance of $125 billion, with expectations of increased spending in 2026. AWS is projected to maintain strong growth, supported by capacity expansion and AI investments. The company anticipates monetizing newly added AWS capacity rapidly, with trailing 12-month free cash flow at $14.8 billion.

Additional News

Amazon announced a €1.4 billion investment in the Netherlands to expand AI capabilities for sellers on its platform. Wedbush analyst Scott Devitt raised the price target for AMZN to $280, citing AWS’s robust backlog and retail momentum. Additionally, Amazon settled an $2.5 billion FTC antitrust lawsuit, a one-time expense impacting Q3 operating income.

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