Amazon exceeded analysts' expectations for the first quarter of 2025, reporting revenue of $155.7 billion, a 9% year-on-year increase. Net income rose to $17.1 billion, or $1.59 per share, up from $10.4 billion and 98 cents per share in the same period last year.
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Online store sales grew by 6% to $57.41 billion, and Amazon Web Services (AWS) revenue increased by 17% to $29.27 billion, slightly below projections. CEO Andy Jassy noted that "heightened buying in certain categories" may reflect customers stocking up ahead of potential tariffs.
Despite strong performance, Amazon's outlook for the second quarter disappointed investors. The company forecast revenue between $159 billion and $164 billion, in line with expectations, but its projected operating income of $13 billion to $17.5 billion fell below analysts' estimates.
CFO Brian Olsavsky attributed the wider forecast range to ongoing uncertainty around consumer demand and potential impacts from President Trump's evolving tariff policies. Jassy added that there has "maybe never been a more important time" to focus on keeping prices low. Measures taken include diversifying the supply chain and making forward inventory purchases.
Following the earnings report, Amazon shares dropped by around 3% in after-hours trading. The stock had already declined by 13% in 2025 up to Thursday's close.
While Amazon's first-quarter results demonstrated continued strength in e-commerce and cloud services, the cautious forward guidance underscored concerns about macroeconomic pressures and geopolitical uncertainty.
Source: www.investopedia.com