Core Viewpoint - Amazon's quarterly revenue and profit met expectations, but the guidance for the second quarter is less optimistic, marking the first major company to highlight tariff impacts on performance [1][8]. Financial Performance - Net sales reached $155.67 billion, a 9% increase from $143.31 billion year-over-year, with a 10% increase excluding currency fluctuations [1]. - Net profit was $17.13 billion, up 64% from $10.43 billion year-over-year, with diluted earnings per share at $1.59, compared to $0.98 a year ago, although below the consensus expectation of $18.88 billion [1]. - Total operating expenses rose to $137.26 billion from $128.01 billion year-over-year [2]. Business Segmentation - Product net sales were $63.97 billion, an increase from $60.91 billion year-over-year [3]. - Service net sales reached $91.70 billion, up from $82.40 billion year-over-year [4]. Regional Performance - North America segment net sales were $92.89 billion, an 8% increase year-over-year, with operating profit of $5.84 billion, up 17%, and an operating margin of 6.3%, compared to 5.8% a year ago [5]. - International segment net sales were $33.51 billion, a 5% increase year-over-year, with operating profit of $1.02 billion, up 13%, and an operating margin of 3.0%, compared to 2.8% a year ago [5]. - AWS cloud services net sales were $29.27 billion, a 17% increase year-over-year, with operating profit of $11.55 billion, up 23%, and an operating margin of 39.5%, compared to 37.6% a year ago [5]. Cash Flow - Operating cash flow for the 12 months ending March 31, 2025, was $113.9 billion, a 15% increase year-over-year, while free cash flow decreased by 48% to $25.9 billion [5]. Strategic Developments - The ASiC chip Trainium 2 is being launched, offering 30%-40% better cost-performance compared to GPU-based instances [6]. - The Agent Amazon Nova Act aims to improve the accuracy of multi-step action-oriented agents from 30%-60% to over 90% [6]. - Concerns regarding tariffs and trade policies, as well as fears of economic recession, may lead to adjustments in performance guidance, which was not mentioned in the previous quarter's guidance [6]. Future Guidance - For Q2 2025, Amazon expects net sales between $159 billion and $164 billion, with operating profit projected between $13 billion and $17.5 billion, indicating a year-over-year revenue growth of 7% to 11% [8]. - The CEO emphasized a continued focus on expanding AI capabilities and preparing for potential tariff scenarios, marking the company as the first major entity to signal tariff impacts [8].