SEATTLE, Oct. 31: Amazon Inc. on Thursday reported third-quarter results for the period ended September 30, 2025, showing net sales of US$180.2 billion, a 13 percent increase from US$158.9 billion in the same period a year earlier. Excluding a favorable foreign-exchange impact of about US$1.5 billion, sales rose approximately 12 percent. The North America segment recorded sales of US$106.3 billion, up 11 percent year-on-year, while the international segment logged US$40.9 billion in sales, up 14 percent (10 percent excluding currency effects). The cloud computing unit, Amazon Web Services (AWS), posted revenue of US$33.0 billion, representing a 20 percent increase compared with the prior year.
Operating income stood at US$17.4 billion, unchanged from the same quarter in 2024. The figure includes two significant one-time charges: US$2.5 billion related to a legal settlement with the Federal Trade Commission and US$1.8 billion in estimated severance costs tied to planned role eliminations. Excluding those items, operating income would have been US$21.7 billion. Net income rose to US$21.2 billion, or US$1.95 per diluted share, up from US$15.3 billion, or US$1.43 per share, a year earlier. The third-quarter net-income figure includes a pre-tax gain of US$9.5 billion from Amazon’s investment in Anthropic, PBC.
For the trailing twelve months ended September 30, operating cash flow increased 16 percent to US$130.7 billion from US$112.7 billion a year earlier. Free cash flow declined to US$14.8 billion, down from US$47.7 billion, driven primarily by a US$50.9 billion increase in purchases of property and equipment. Alongside the earnings release, Amazon raised its full-year capital expenditure forecast for 2025 to approximately US$125 billion, up from an earlier estimate of about US$118 billion. The company indicated that capital spending is expected to rise further in 2026. Looking ahead to the fourth quarter, Amazon provided guidance for net sales in the range of US$206 billion to US$213 billion, reflecting growth of 10 percent to 13 percent compared with the same quarter last year.
Amazon delivers strong revenue growth in third quarter
Operating income is projected to fall between US$21 billion and USUS$26 billion. Amazon noted that AWS operating income for the quarter reached US$11.4 billion, up from US$10.4 billion in the prior year. The North America segment reported operating income of US$4.8 billion, down from US$5.7 billion a year earlier; excluding the US$2.5 billion legal settlement charge the North America operating income would have been about US$7.3 billion. The international segment produced operating income of US$1.2 billion, compared with US$1.3 billion in the prior year. In a statement, Amazon said AWS is “growing at a pace we haven’t seen since 2022, re-accelerating to 20.2 percent year-on-year,” and noted the company added more than 3.8 gigawatts of new power capacity over the past 12 months.
Strong performance reinforces investor confidence
Shares of Amazon rose sharply in after-hours trading following the release of the results and the elevated capital-expenditure forecast. Acknowledging the high investment level and one-time charges, the company emphasised its broad revenue increase across segments and cloud-unit acceleration. The strong performance of Amazon Web Services and continued gains in its advertising business contributed to investor confidence, while solid retail sales across key markets underlined the company’s diversified growth base. Analysts noted that the latest figures reflect consistent execution in both cloud and commerce operations, reinforcing Amazon’s position among the top-performing global technology firms. – By Content Syndication Services.