Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally.
Amazon has delivered a robust third-quarter performance, underpinned by accelerating growth in its cloud division and continued expansion across retail and advertising. The results reinforced the company’s renewed focus on artificial intelligence (AI) as a core driver of long-term growth.
The company reported net sales of USD 180.2 billion, up 13% year-on-year, while operating income remained steady at USD 17.4 billion, despite significant one-off charges. Excluding a USD 2.5 billion legal settlement with the US Federal Trade Commission and USD 1.8 billion in severance costs, operating income would have reached USD 21.7 billion. Net income rose 38% to USD 21.2 billion, boosted by gains from Amazon’s investment in AI startup Anthropic.
Amazon Web Services (AWS), the company’s cloud computing arm, was the standout performer. The division grew 20% year-on-year to USD 33 billion, marking its fastest expansion since 2022. This acceleration has eased investor concerns that AWS was losing ground to competitors such as Microsoft and Google. The growth reflects rising demand for AI infrastructure, as companies invest in computing power to support next-generation applications.
AWS continues to benefit from major AI partnerships, particularly with Anthropic, whose Claude AI models run on Amazon’s newly launched Project Rainier — a cluster featuring 500,000 Trainium2 chips designed in-house. The company also unveiled new NVIDIA Grace Blackwell-powered servers and expanded its Bedrock platform to include leading AI models from multiple providers. These developments highlight Amazon’s strategy to position AWS as the go-to platform for scalable AI innovation.
While AI dominated headlines, Amazon’s core retail and advertising businesses also performed well. North American sales increased 11% to USD 106.3 billion, and international sales rose 14% to USD 40.9 billion. The online store segment generated USD 67.4 billion, up 10%, supported by stronger Prime membership engagement and faster delivery speeds.
Advertising revenue surged 24% to USD 17.7 billion, reinforcing its role as one of Amazon’s fastest-growing profit centres. The company has also begun selling ad space across third-party platforms like Netflix and Spotify, widening its digital marketing ecosystem. Meanwhile, over 1.3 million independent sellers now use Amazon’s generative AI tools to enhance product listings, improving efficiency and product visibility.
Amazon’s financial guidance for the final quarter of 2025 signals continued confidence. The company expects revenue between USD 206 billion and USD 213 billion, implying up to 13% annual growth, with operating income projected between USD 21 billion and USD 26 billion. Management is prioritising AI and logistics investments while maintaining cost discipline through automation and restructuring.
