·Amazon earnings beat across the board, but s fall as investors fret trade headwindsBy Nick LichtenbergBy Nick LichtenbergFortune Intelligence EditorNick LichtenbergFortune Intelligence EditorNick Lichtenberg is Fortune Intelligence editor and was formerly Fortune's executive editor of global news.SEE FULL BIO Amazon CEO Andy Jassy.David Paul Morris/Bloomberg via Getty ImagesAmazon reported robust second-quarter 2025 financial results on July 31, surpassing Wall Street expectations with sharp revenue growth and notable gains in key segments.
Yet, investor enthusiasm was tempered as the company’s s dropped as much as 3% in after-hours trading, reflecting lingering concerns retail headwinds and long-term spending plans.
For the April-June period, Amazon posted revenue of $167.7 billion, climbing 13% year-over-year and outpacing analyst predictions of $162.1 billion.
Earnings per came in at $1.68, also topping the expected $1.33. Net income for the quarter reached an impressive $18.2 billion, more than a 10% increase from last year.
Amazon’s financial outperformance stems from strong execution across several areas.
Though its sprawling retail operations remain the largest part of its , the real engine of fit growth continues to be Amazon Web Services (AWS), the company’s cloud-computing arm.
AWS and AI power fitability AWS generated $30.9 billion in revenue, marking a 17.5% increase year-over-year and landing squarely in line with industry forecasts.
The unit contributed $10.2 billion in operating fit—more than half of Amazon’s total $19.2 billion operating income for the quarter.
This confirms AWS’s role as Amazon’s financial powerhouse, driven by surging demand for AI and cloud infrastructure as es accelerate nology investments.
Chief executive Andy Jassy has spotlighted AI as a transformative force for Amazon, with the majority of 2025’s planned $100 billion in capital expenditures dedicated to expanding AWS’ capacity for generative AI and machine learning.
As major clients move more workloads to the cloud and adopt AI-driven services, AWS remains positioned for long-term leadership, despite short-term margin pressures from its heavy investments.
Retail and advertising show resilience Despite concerns tariffs and consumer spending, Amazon’s core online store sales grew 11% to $61.5 billion.
The company’s third-party seller services also expanded, with revenue rising 11% to $40.3 billion.
Physical stores, including Whole Foods, dered a 7% increase to $5.6 billion, while subscription revenue—such as Prime memberships—rose 12% to $12.2 billion.
Amazon’s advertising segment was a standout performer, raking in $15.6 billion in revenue, up 23% from the prior year.
This ad is becoming an increasingly critical pillar within Amazon’s fit structure, as brands compete for consumer eyeballs on the platform’s massive shopping interface.
Challenges and outlook The company is navigating a complex macroeconomic climate that includes inflation, changing trade policies, and labor market constraints.
Shipping expenses climbed 6% to $23.4 billion, reflecting both global cost pressures and heightened demand for fast dery.
Although Amazon’s Q2 earnings don’t reflect the impact of July’s Prime Day—held after quarter’s end—the company remains optimistic, jecting third-quarter revenue in the range of $174 billion to $179.5 billion, above analyst expectations.
Operating income is forecast between $15.5 billion and $20.5 billion.
Meanwhile, Amazon’s headcount inched up 1% year-over-year to 1.55 million, with CEO Andy Jassy signaling further workforce lining as automation and generative AI gain traction internally.
“Our AI gress across the board continues to imve our customer experiences, speed of innovation, operational efficiency, and growth, and I’m excited for what lies ahead,” he said in the earnings press release.
Investor response Despite the upbeat earnings report, Amazon stock fell in ext trading, illustrating Wall Street’s wariness continued retail volatility, capital-intensive growth, and competitive dynamics in cloud and AI.
Still, analysts remain bullish on Amazon’s strategic direction, citing leadership in cloud innovation, resilient retail fundamentals, and an aggressive expansion into the future of artificial intelligence.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
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