Amazon(US:AMZN)2025-10-30 20:13Financial Performance - Net sales increased 13% to $180.2 billion in Q3 2025, compared to $158.9 billion in Q3 2024, with a 12% increase excluding foreign exchange impacts[4] - Operating income was $17.4 billion in Q3 2025, unchanged from Q3 2024, but would have been $21.7 billion without special charges totaling $4.3 billion[4] - Net income rose to $21.2 billion, or $1.95 per diluted share, compared to $15.3 billion, or $1.43 per diluted share, in Q3 2024[4] - Operating cash flow increased 16% to $130.7 billion for the trailing twelve months, up from $112.7 billion in the previous year[4] - Free cash flow decreased to $14.8 billion for the trailing twelve months, down from $47.7 billion, primarily due to a $50.9 billion increase in property and equipment purchases[4] - Fourth quarter 2025 net sales are expected to be between $206.0 billion and $213.0 billion, reflecting a growth of 10% to 13% compared to Q4 2024[9] - Operating income for Q4 2025 is projected to be between $21.0 billion and $26.0 billion, compared to $21.2 billion in Q4 2024[9] Segment Performance - AWS segment sales grew 20% year-over-year to $33.0 billion, reflecting strong demand in AI and core infrastructure[4] - North America net sales increased by 11% year-over-year to $106,267 million for the three months ended September 30, 2025[21] - International net sales grew by 14% year-over-year to $40,896 million for the same period[21] - AWS net sales rose by 20% year-over-year to $33,006 million for the three months ended September 30, 2025[21] - Total operating income for the North America segment was $9,256 million in Q4 2024, a decline of 15% year-over-year[27] - Operating margin for the AWS segment was 34.6% in Q2 2025, compared to 35.9% in Q1 2025[27] Cash Flow and Expenses - Cash provided by operating activities for the three months ended September 30, 2024, was $25,971 million, compared to $35,525 million in 2025, a decline of 26.9%[15] - Cash paid for interest on debt for the nine months ended September 30, 2024, was $2,002 million, compared to $1,651 million in 2025, an increase of 21.2%[15] - Total operating expenses for the three months ended September 30, 2024, were $141,466 million, up from $162,747 million in 2025, a rise of 15%[17] - Total stock-based compensation expense decreased to $4,847 million in Q2 2025, down 9% year-over-year[29] - Worldwide shipping costs increased to $25,384 million in Q2 2025, reflecting an 8% year-over-year growth[29] Growth and Innovation - Amazon's Trainium2 AI chip business grew 150% quarter-over-quarter, indicating strong adoption and demand[5] - The company plans to expand same-day delivery of perishable groceries to over 2,300 communities by the end of 2025[5] - The company continues to focus on expanding its market presence through new strategies and product offerings[37] - Future outlook includes ongoing investments in technology and product development to enhance customer experience[37] - The company aims to improve operational efficiency and drive growth through strategic partnerships and acquisitions[37] - Continued focus on innovation and customer-centric solutions is expected to drive long-term growth[37] Market and User Engagement - User data indicates a steady increase in engagement across various platforms, contributing to overall sales growth[37] - The company is exploring new market opportunities to diversify its revenue streams and enhance shareholder value[37] - Future performance guidance suggests a positive trajectory with anticipated revenue growth in the upcoming quarters[37] - The company is committed to maintaining transparency in its financial reporting and investor communications[38]