Amazon(US:AMZN) Huachuang Securities·2025-11-02 13:33Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index by more than 5% over the next 3-6 months [42]. Core Insights - Amazon reported Q3 2025 revenue of $180.2 billion, a year-on-year increase of 13% (12% excluding currency effects). North America contributed $106.3 billion (59% of total revenue), international revenue was $40.9 billion (23%), and AWS revenue reached $33 billion (18%), with a 20% year-on-year growth [3][7][14]. - The operating profit for Q3 2025 was $17.4 billion, or $21.7 billion when excluding special items. Net profit was $21.2 billion, boosted by a $9.5 billion gain from the investment in Anthropic [3][8]. - Amazon's capital expenditure for Q3 2025 was $34.2 billion, primarily focused on AI infrastructure, self-developed chips (like Trainium2), and logistics networks. The total capital expenditure for 2025 is projected to be around $125 billion, with further increases expected in 2026 [3][10]. Revenue Breakdown - Retail Business: North America revenue was $106.3 billion, up 11% year-on-year, with an operating profit of $4.8 billion (or $7.3 billion excluding FTC settlement impacts) [11]. - International Business: International revenue was $40.9 billion, up 10% year-on-year (excluding currency effects), with an operating profit of $1.2 billion [12]. - AWS: AWS revenue was $33 billion, up 20% year-on-year, with an operating profit of $11.4 billion. The unfulfilled contract amount for AWS reached $200 billion, indicating strong future revenue potential [14]. - Advertising Business: Amazon Ads revenue reached $17.6 billion, a 22% year-on-year increase, driven by effective execution of a full-funnel advertising strategy [15]. Performance Guidance - Amazon expects strong business momentum in Q4 2025, driven by robust holiday season demand. The company maintains its capital expenditure forecast of approximately $125 billion for 2025, with further increases anticipated in 2026 [16].