Core Insights - Amazon.com (AMZN) reported first-quarter 2025 earnings of $1.59 per share, a 40.7% increase year-over-year, surpassing the Zacks Consensus Estimate by 17.78% [1] - Net income rose 64.4% year-over-year to $17.1 billion, while net sales reached $155.7 billion, a 9% increase from the previous year, exceeding management's guidance [1][2] Financial Performance - Excluding a $1.4 billion negative impact from foreign exchange, net sales increased by 10% year-over-year [2] - Product sales accounted for 41.1% of total sales, increasing 5% to $63.9 billion, while service sales, making up 58.9%, jumped 11.3% to $91.6 billion [5] - North America revenues rose 7.6% to $92.88 billion, international revenues increased 4.9% to $33.5 billion, and AWS revenues grew 16.9% to $29.3 billion [6] Segment Performance - Third-party seller services generated $36.5 billion in sales, a 6% year-over-year increase [7] - Advertising services sales increased 18% to $13.9 billion, while physical store sales grew 8% to $5.53 billion [8] - Subscription services sales rose 10% to $11.5 billion, driven by strong Prime membership growth [9] Operational Highlights - Operating expenses were $137.26 billion, up 7.2% year-over-year, but as a percentage of revenues, it contracted by 120 basis points to 88.2% [18] - Operating income increased 20.2% to $18.4 billion, with North America segment operating income up 17.2% to $5.84 billion [19][20] Balance Sheet and Cash Flow - As of March 31, 2025, cash and cash equivalents were $66.2 billion, down from $78.7 billion at the end of 2024, while marketable securities rose to $28.3 billion [21] - Long-term debt increased to $53.3 billion, and operating cash flow rose 15% to $113.9 billion [22] Guidance - For Q2 2025, Amazon expects net sales between $159.0 billion and $164.0 billion, reflecting a growth rate of 7-11% year-over-year, with an anticipated negative impact from foreign exchange [24]