Amazon Reports Q1 2025 Financial Results with $155.7 Billion in Sales

Amazon.com, Inc. reported its financial results for the first quarter of 2025, revealing a total net sales of $155.7 billion, a 9% increase from $143.3 billion in the same period last year. The company's net income for the quarter was $17.1 billion, up from $10.4 billion in Q1 2024, resulting in diluted earnings per share of $1.59 compared to $0.98 a year earlier. The growth in revenue was driven by increased sales across its North America and AWS segments, despite a negative impact of approximately $1.4 billion from foreign exchange fluctuations.

In terms of operational performance, Amazon's North America segment generated $92.9 billion in sales, reflecting an 8% increase year-over-year, while the International segment saw a 5% rise to $33.5 billion. AWS continued its strong performance with a 17% increase in sales, reaching $29.3 billion. The company also reported an increase in operating income, which rose to $18.4 billion from $15.3 billion in the prior year, attributed to improved efficiencies and higher sales volumes.

Strategically, Amazon has continued to invest in its infrastructure, with capital expenditures amounting to $24.3 billion in Q1 2025, up from $13.9 billion in the same quarter last year. This investment is primarily aimed at enhancing its technology infrastructure and fulfillment capabilities to support growing demand. The company also noted a significant increase in its employee headcount, which rose to approximately 1.5 million as of March 31, 2025, reflecting its ongoing expansion efforts.

The filing also highlighted changes in accounting estimates, particularly regarding the useful lives of certain servers and networking equipment, which were adjusted from six years to five years. This change resulted in an increase in depreciation expense and a corresponding reduction in net income of $162 million for the quarter. Additionally, Amazon's cash, cash equivalents, and marketable securities totaled $94.6 billion as of March 31, 2025, down from $101.2 billion at the end of the previous fiscal year.

Looking ahead, Amazon provided guidance for the second quarter of 2025, projecting net sales between $159 billion and $164 billion, representing a growth rate of 7% to 11% compared to the same period in 2024. The company anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates on its sales growth. Operating income for the upcoming quarter is expected to range from $13 billion to $17.5 billion, compared to $14.7 billion in Q2 2024.