Amazon's Q3 Earnings: AWS and North America See Double-Digit Growth

Amazon's Q2 earnings show double-digit growth in AWS, North America, and International segments. The company's cloud computing business posted a 29% increase in revenue, while North America sales rose 17% and International sales increased 23%. Amazon's total revenue for the quarter was $113.1 billion, up 20% year-over-year.

Amazon (NASDAQ: AMZN) reported its second-quarter earnings, showcasing robust growth across its AWS, North America, and International segments. The company's cloud computing business, AWS, posted a 29% increase in revenue, while North America sales rose 17% and International sales increased 23%. Amazon's total revenue for the quarter was $167.7 billion, up 13.3% year-over-year, beating analyst expectations of $162.1 billion [3].

AWS, Amazon's cloud computing division, delivered sales of $30.9 billion, up 17.5% from a year earlier, slightly below the consensus of 20% growth. Despite the slight miss, AWS remains a significant contributor to Amazon's overall revenue and operating profits. The company's North America segment sales increased 11% year-over-year to $100.1 billion, while International sales increased 16% year-over-year to $36.8 billion, or 11% excluding changes in foreign exchange rates [1].

Amazon's guidance for the third quarter 2025 projects net sales between $174.0 billion and $179.5 billion, with revenue growth between 10% and 13% compared to the third quarter of 2024. The guidance anticipates a favorable impact of approximately 130 basis points from foreign exchange rates. Operating income is expected to be between $15.5 billion and $20.5 billion [1].

The company's earnings report also highlighted the impact of tariffs and trade policies on its retail business. In its Q1 earnings report, Amazon added "tariff and trade policies" to a list of factors creating uncertainty in its results. Despite these challenges, Amazon's e-commerce strength and advertising revenue growth helped drive overall quarterly performance. Advertising revenue was up 23% to $15.6 billion, while third-party seller services revenue was up 11% to $40.3 billion [3].

Amazon's shares were down more than 3% in after-hours trading following the earnings release, despite beating revenue and earnings per share estimates. The company's stock has lagged behind its tech peers this year, with Amazon's stock up 5.4% year-to-date compared to Meta and Microsoft's respective increases of roughly 20% and 12% [2].

The earnings report underscores Amazon's continued investment in AI and its cloud computing business. During the quarter, Amazon began rolling out an AI-upgraded version of its Alexa voice assistant and launched a new agentic AI group in its research and development lab. The company is also focused on reducing its corporate workforce as it adopts more generative AI tools and agents [2].

Amazon's Q2 results demonstrate the company's ability to navigate economic headwinds and maintain strong growth in its core segments. The third-quarter guidance provides further insight into Amazon's expectations for the remainder of the year, with a focus on continued investment in AI and cloud computing.

References:
[1] https://seekingalpha.com/news/4475905-amazon-gaap-eps-of-1_68-beats-by-0_35-revenue-of-167_7b-beats-by-5_59b
[2] https://www.cnbc.com/2025/07/31/amazon-amzn-q2-earnings-report-2025.html
[3] https://www.geekwire.com/2025/amazon-tops-q2-estimates-with-167-7b-in-revenue-19-2b-in-profits-aws-up-17-to-30-9b/