Amazon.com, Inc. (NASDAQ: AMZN) has announced its financial results for the third quarter ended September 30, 2025, showcasing robust growth across various segments. The company reported net sales of $180.2 billion, reflecting a 13% increase compared to $158.9 billion in the same quarter of 2024. Excluding the favorable impact of foreign exchange rates, net sales grew by 12% year-over-year.

North America Segment: Sales increased by 11% year-over-year to $106.3 billion.

International Segment: Sales surged 14% year-over-year to $40.9 billion, or increased 10% excluding foreign exchange impacts.

Amazon Web Services (AWS): Sales grew by an impressive 20% year-over-year to $33.0 billion.

2. Operating Income and Special Charges

Amazon's operating income remained steady at $17.4 billion, comparable to the same period in the previous year. However, the results for Q3 2025 included two significant special charges totaling $4.3 billion: $2.5 billion related to a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs associated with planned role eliminations. Without these charges, the operating income would have been $21.7 billion.

North America Operating Income: Dropped to $4.8 billion, down from $5.7 billion in Q3 2024. Excluding the FTC-related charge, it would have been $7.3 billion.

International Operating Income: Slightly decreased to $1.2 billion from $1.3 billion in the previous year.

AWS Operating Income: Increased to $11.4 billion, up from $10.4 billion in Q3 2024.

3. Net Income and Earnings Per Share

Net income for the quarter reached $21.2 billion, or $1.95 per diluted share, marking a significant rise from $15.3 billion, or $1.43 per diluted share, in Q3 2024. The net income for Q3 2025 included $9.5 billion in pre-tax gains classified under non-operating income, primarily from investments in Anthropic, PBC.

4. Cash Flow and Free Cash Flow

Operating cash flow for the trailing twelve months increased by 16% to $130.7 billion, compared to $112.7 billion for the trailing twelve months ending September 30, 2024. However, free cash flow decreased to $14.8 billion for the trailing twelve months, mainly due to a $50.9 billion year-over-year increase in purchases of property and equipment.

5. CEO Commentary

Andy Jassy, Amazon's President and CEO, remarked, “We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business. AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity—adding more than 3.8 gigawatts in the past 12 months.”

6. Strategic Developments and Innovations

The quarter was also marked by significant advancements and innovations:

Trainium2 Adoption: Continued strong adoption of Amazon’s custom AI chip, achieving a growth rate of 150% quarter-over-quarter.

Project Rainier: Launch of a massive AI compute cluster comprising nearly 500,000 Trainium2 chips to support Anthropic’s Claude AI models.

AWS Expansion: Added new Amazon EC2 instances and foundation models, including collaborations with OpenAI and Anthropic.

Customer Experience Enhancements: Improvements in fulfillment networks and expansion of same-day grocery delivery to over 2,300 communities by year-end.

7. Fourth Quarter Outlook

Looking ahead, Amazon provided guidance for the fourth quarter of 2025, expecting net sales to range between $206.0 billion and $213.0 billion, representing growth between 10% and 13% compared to Q4 2024. Operating income is anticipated to be between $21.0 billion and $26.0 billion.

8. Conclusion

Overall, Amazon’s Q3 2025 results reflect a strong performance amid various challenges, bolstered by substantial growth in net sales, AWS, and innovations that enhance customer experiences. As the company continues to invest in technology and infrastructure, it positions itself for sustained growth in the competitive landscape of e-commerce and cloud services.

Original press release