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

Amazon.com (AMZN) reported its fiscal 2025 Q3 earnings on October 30, 2025, delivering results that exceeded expectations. The company’s 13.4% revenue growth to $180.17 billion and 38.2% net income surge to $21.19 billion highlight its strong operational performance. Guidance for AWS growth and capital expenditures (CapEx) reflects confidence in sustaining momentum.

Revenue

Amazon’s revenue surged 13.4% year-over-year to $180.17 billion, driven by robust performance across its key segments. Online stores generated $67.41 billion, while third-party seller services contributed $42.49 billion. Advertising services saw $17.70 billion in revenue, and AWS delivered $33.01 billion, reflecting its 20.2% annualized growth. Physical stores added $5.58 billion, and subscription services reached $12.57 billion. The company’s diversified revenue streams underscore its ability to capitalize on e-commerce, cloud computing, and advertising trends.

Earnings/Net Income

Earnings per share (EPS) rose 35.6% to $1.98 in 2025 Q3, outpacing the $1.46 recorded in the prior-year period. Net income climbed 38.2% to $21.19 billion, marking a record high for the quarter. The substantial EPS growth underscores Amazon’s strong profitability and effective cost management.

Post-Earnings Price Action Review

Amazon’s stock price edged down 1.85% in the latest trading day but gained 0.80% over the past week and 1.50% month-to-date. While short-term volatility persists, the stock’s resilience aligns with its long-term growth trajectory, supported by AWS expansion and strategic investments in AI and logistics.

CEO Commentary

CEO Andy Jassy highlighted AWS’s 20.2% year-over-year revenue growth, driven by AI adoption and infrastructure expansion. He emphasized the role of custom silicon like Trainium2, which grew 150% quarter-over-quarter, and Amazon’s leadership in cloud transformations. Jassy also noted advancements in perishable grocery delivery and AI tools like Rufus, positioning Amazon to benefit from agentic commerce trends.

Guidance

AWS aims to maintain 20%+ growth with $132 billion in annualized revenue, supported by 3.8 gigawatts of new power capacity added in 2025. Amazon plans to invest $125 billion in 2025 full-year cash CapEx, prioritizing AI and cloud infrastructure. The company also aims to expand perishable grocery delivery to 2,300 U.S. cities by year-end and double AWS power capacity by 2027.

Additional News

1. Strategic Investment in the Netherlands: Amazon announced a 1.4 billion euro ($1.63 billion) investment in the Netherlands over three years to develop AI for entrepreneurs on its platform.

2. Wedbush Price Target Hike: Wedbush analyst Scott Devitt raised Amazon’s price target to $280 from $250, citing robust cloud demand and retail momentum.

3. SEC 10-Q Filing: Amazon’s Q3 10-Q report detailed $180.17 billion in net sales, $21.19 billion in net income, and $1.98 EPS, reinforcing its financial strength.

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