Amazon.com delivered another solid quarter, topping analyst forecasts for both earnings and revenue, though profitability came in a touch softer as margins eased from earlier highs.
- The tech and retail giant reported Q3 earnings per share of $1.95, well above estimates of $1.58.
- Net sales rose to $180.17 billion, beating expectations of $177.82 billion, driven by strength across e-commerce and cloud computing.
North America sales climbed to $106.27 billion (vs. $104.96 billion expected), while AWS revenue rose 20% ex-FX to $33.01 billion, also ahead of forecasts for $32.39 billion. Physical store sales were broadly in line at $5.58 billion.
However, operating income of $17.42 billion missed the consensus of $19.72 billion, with operating margin at 9.7%, below the 11.1% analyst estimate.
Looking ahead, Amazon expects Q4 net sales between $206 billion and $213 billion (street $208.45 billion) and operating income of $21 billion–$26 billion (vs. $23.78 billion expected), signalling confidence in year-end demand despite some cost pressure.
AWS momentum re-accelerates:
- Amazon Web Services revenue grew 20.2% year-on-year, marking its fastest pace since 2022. The division added over 3.8 gigawatts of capacity in the past 12 months and continues to see strong demand for both AI and core infrastructure, underscoring AWS’s role as a key driver of Amazon’s long-term growth.
