Amazon(US:AMZN) Feng Huang Wang·2026-02-05 22:16Core Viewpoint - Amazon reported its Q4 and full-year 2025 financial results, showing significant revenue growth but disappointing earnings per share, leading to a sharp decline in stock price after the announcement [1][2]. Financial Performance - Q4 total revenue reached $213.86 billion, a 14% increase from $187.79 billion year-over-year; excluding a favorable $2.8 billion impact from currency fluctuations, the revenue growth was 12% [4]. - Q4 net profit was $21.19 billion, up 6% from $20.00 billion in the same quarter last year [5]. - For the full year 2025, total revenue was $716.92 billion, a 12% increase from $637.96 billion in 2024; net profit rose 31% to $77.67 billion from $59.25 billion [1]. Earnings and Cash Flow - Q4 operating income was $24.98 billion, an 18% increase from $21.20 billion year-over-year; this included special expenses totaling $1.1 billion related to tax disputes and layoffs [4]. - Operating cash flow for the 12 months ending December 31, 2025, was $139.5 billion, a 20% increase from $115.9 billion year-over-year; free cash flow decreased by 71% to $11.2 billion from $38.2 billion [5]. Business Segmentation - AWS cloud computing revenue for Q4 was $35.6 billion, a 24% increase year-over-year, with operating income of $12.5 billion, up 18% from $10.6 billion [6]. - North America segment revenue for Q4 was $127.1 billion, a 10% increase year-over-year, with operating income of $11.5 billion, up 24% from $9.3 billion [6]. - International segment revenue for Q4 was $50.7 billion, a 17% increase year-over-year; excluding currency effects, the growth was 11%, with operating income of $1 billion, down 23% from $1.3 billion [6]. Q1 2026 Outlook - Revenue for Q1 2026 is expected to be between $173.5 billion and $178.5 billion, representing a year-over-year growth of 11% to 15%, including a favorable currency impact of approximately 180 basis points [7]. - Operating income is projected to be between $16.5 billion and $21.5 billion, compared to $18.4 billion in the same quarter last year [7].