Amazon Q3 sales up 13% to $180.2bn with outlook for double‑digit growth

Core Insights - Amazon reported net sales of $180.2 billion for Q3 2025, a 13% increase from $158.9 billion a year earlier, with a 12% increase when excluding a $1.5 billion favorable currency impact [1] - The company forecasts Q4 2025 net sales between $206 billion and $213 billion, indicating year-on-year growth of 10% to 13% [4] Financial Performance - Operating income for Q3 2025 was $17.4 billion, unchanged from the previous year, but would have been $21.7 billion excluding one-off charges of $2.5 billion for a legal settlement and $1.8 billion for severance [2] - Net income rose to $21.2 billion, or $1.95 per diluted share, compared to $15.3 billion, or $1.43 per diluted share, a year earlier, with pre-tax gains of $9.5 billion from investments in Anthropic [3] - Cash from operations increased 16% to $130.7 billion over the past 12 months, up from $112.7 billion [3] - Free cash flow fell to $14.8 billion due to a $50.9 billion increase in property and equipment purchases compared to $47.7 billion the previous year [4] Business Segments - North America revenue increased 11% to $106.3 billion, while international sales advanced 14% to $40.9 billion, or 10% in constant currency [1] - Amazon Web Services (AWS) revenue reached $33 billion, reflecting a 20% year-on-year growth [1][6] - AWS is experiencing growth not seen since 2022, with a re-acceleration to 20.2% year-on-year, driven by strong demand in AI and core infrastructure [6] Strategic Initiatives - The company is innovating in its fulfillment network, aiming to deliver to Prime members at the fastest speeds ever and expanding same-day delivery of perishable groceries to over 2,300 communities by year-end [7] - Amazon plans to double the number of rural communities with access to Same-Day and Next-Day Delivery [7]