Amazon (AMZN) reported Q1 2025 results after the close that beat Wall Street expectations on both the top and bottom lines, led by strong performance in AWS and continued growth in consumer-facing segments.
Financial Highlights – Q1 2025
| Metric | Actual | Estimate | Q1 2024 | YoY Change |
|---|---|---|---|---|
| EPS | $1.59 | $1.38 | $0.98 | +62.2% |
| Revenue | $155.67B | $154.88B | $127.36B | +22.3% |
| Operating Income | $18.41B | – | $12.25B | +50.3% |
Segment Highlights
AWS (Cloud): Revenue up 17% YoY to $29.27B — continued reacceleration
Online Stores: $57.41B, +5% YoY
Third-Party Seller Services: $36.51B, +5.5% YoY
Subscription Services: $11.72B, +9.3% YoY
Physical Stores: $5.53B, +6.4% YoY
What Amazon Said
CEO Andy Jassy emphasized AWS momentum and progress in AI:
“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences. From Alexa+ (our next generation of Alexa that’s meaningfully smarter, more capable, and takes actions for customers), to another delivery speed record for our Prime members, to our new Trainium2 chips and Bedrock model expansion that make it easier for AWS customers to train models and run inference more flexibly and cost-effectively, to our first Project Kuiper satellites successfully launching into low earth orbit in our quest to provide broadband access to hundreds of millions of households in rural areas without it today—we’re continuing to find meaningful ways to make customers’ lives easier and better every day.
He also highlighted demand for Amazon’s generative AI capabilities and efficiency gains across the retail and cloud segments.
Forward guidance for Q2
- Q2 operating income guidance $3 – $17.5 billion which is lower than expected $17.82 billion expected.
- Q2 revenue view $159 billion-$164 billion versus expectations of $161.62 billion.
- Q2 revenue guidance anticipates unfavorable impact of about $10 billion from FX rates.
Amazon shares are trading down 4.86% on concerns about guidance.
Market Reaction
Despite the strong beat, shares fell about 5% in after-hours trading. The decline was tied to:
Q2 revenue guidance of $159–164B, slightly below some analyst expectations
Investor caution amid macro headwinds and tariff uncertainty
Amazon’s Q1 report reflects broad-based strength but forward-looking concerns remain, especially around consumer spending and global trade policy.
