Amazon(AMZN) - 2025 Q2 - Quarterly Results

Financial and Operational Highlights Amazon reported strong Q2 2025 results with significant sales and operating income growth, driven by AI investments and operational milestones Q2 2025 Financial Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales (Billion USD) | $167.7B | $148.0B | +13% | | Operating Income (Billion USD) | $19.2B | $14.7B | +30.7% | | Net Income (Billion USD) | $18.2B | $13.5B | +34.9% | | Diluted EPS ($) | $1.68 | $1.26 | +33.3% | | North America Sales (Billion USD) | $100.1B | $90.0B | +11% | | International Sales (Billion USD) | $36.8B | $31.7B | +16% | | AWS Sales (Billion USD) | $30.9B | $26.3B | +17.5% | - CEO Andy Jassy emphasized the company's conviction in AI, highlighting its application in enhancing customer experiences (Alexa+, shopping agents), improving operational efficiency (DeepFleet for robots), and empowering developers (Kiro, Strands, Bedrock AgentCore)[3] - Key business developments include the biggest Prime Day event ever, expansion of Same-Day and Next-Day Delivery to over 4,000 smaller cities and towns, and the launch of a Nike storefront on Amazon.com in the U.S[5] - AWS secured new and expanded agreements with major clients and announced multi-billion dollar investments to expand cloud and AI infrastructure in North Carolina, Pennsylvania, and Australia[6] Financial Guidance Amazon projects Q3 2025 net sales growth of 10-13% and operating income between $15.5 billion and $20.5 billion Q3 2025 Guidance | Metric | Guidance Range | YoY Growth | | :--- | :--- | :--- | | Net Sales (Billion USD) | $174.0B - $179.5B | 10% - 13% | | Operating Income (Billion USD) | $15.5B - $20.5B | N/A (vs. $17.4B in Q3 2024) | - The sales guidance anticipates a favorable impact of approximately 130 basis points from foreign exchange rates[12] Financial Statements Consolidated financial statements reveal robust revenue and profit growth, asset expansion, and increased operating cash flow despite a decline in free cash flow Consolidated Statements of Operations Q2 2025 saw total net sales increase 13% to $167.7 billion, operating income grow 31% to $19.2 billion, and diluted EPS reach $1.68 Q2 2025 Statement of Operations | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | | :--- | :--- | :--- | | Total Net Sales | $167,702 | $147,977 | | Operating Income | $19,171 | $14,672 | | Net Income | $18,164 | $13,485 | | Diluted EPS ($) | $1.68 | $1.26 | Consolidated Balance Sheets As of June 30, 2025, total assets grew to $682.2 billion, supported by an increase in total stockholders' equity to $333.8 billion Balance Sheet Summary | Metric | June 30, 2025 (Million USD) | Dec 31, 2024 (Million USD) | | :--- | :--- | :--- | | Total Current Assets | $191,420 | $190,867 | | Property and equipment, net | $297,616 | $252,665 | | Total Assets | $682,170 | $624,894 | | Total Current Liabilities | $186,921 | $179,431 | | Total Stockholders' Equity | $333,775 | $285,970 | Consolidated Statements of Cash Flows TTM operating cash flow increased 12% to $121.1 billion, but free cash flow decreased to $18.2 billion due to increased capital expenditures Cash Flow Summary (TTM) | Metric | TTM Ended Jun 30, 2025 (Million USD) | TTM Ended Jun 30, 2024 (Million USD) | | :--- | :--- | :--- | | Net cash from operating activities | $121,137 | $107,952 | | Net cash used in investing activities | ($123,569) | ($64,354) | | Net cash used in financing activities | ($8,652) | ($21,440) | Segment Information All segments showed strong Q2 2025 sales growth, with AWS leading profitability at $10.2 billion operating income Q2 2025 Segment Performance | Segment | Net Sales (Million USD) | Y/Y Growth | Operating Income (Million USD) | Y/Y Growth | | :--- | :--- | :--- | :--- | :--- | | North America | $100,068 | 11% | $7,517 | 48% | | International | $36,761 | 16% | $1,494 | 447% | | AWS | $30,873 | 17.5% | $10,160 | 9% | Supplemental Financial Information and Business Metrics Supplemental metrics show TTM operating cash flow growth, a decline in free cash flow, strong advertising revenue, and stable employee count Key Performance Indicators (TTM) TTM operating cash flow increased 12% to $121.1 billion, while free cash flow declined 66% to $18.2 billion, despite a 59% rise in net income Trailing Twelve Months (TTM) Performance | Metric | Q2 2025 TTM (Million USD) | Y/Y Change | | :--- | :--- | :--- | | Operating cash flow | $121,137 | +12% | | Free cash flow | $18,184 | -66% | | Net income | $70,623 | +59% | Net Sales by Type Q2 2025 saw Advertising services revenue grow 23% to $15.7 billion, leading growth among all net sales categories Q2 2025 Net Sales by Service | Service | Q2 2025 Net Sales (Million USD) | Y/Y Growth | | :--- | :--- | :--- | | Online stores | $61,485 | 11% | | Third-party seller services | $40,348 | 11% | | Advertising services | $15,694 | 23% | | Subscription services | $12,208 | 12% | | AWS | $30,873 | 17% | Forward-Looking Statements and Definitions This section outlines risks associated with forward-looking statements and defines key terms for clarity - The report contains forward-looking statements that are inherently difficult to predict and are subject to risks such as economic conditions, competition, and the ability to manage growth[7][9] - The report defines key terms for clarity: - Active Customers: Have placed an order in the preceding twelve months - Active Sellers: Have received an order in the preceding twelve months - Active AWS Customers: Have had AWS usage activity in the preceding month[34][35][36]