Amazon Com — Income Statement, Cash Flows & Balance Sheet
Is Amazon profitable?
Amazon's profitability has surged, with operating income more than doubling over two years.
| Metric | 2023 | 2024 | 2025 | Change (2024–2025) |
|---|---|---|---|---|
| Total net sales ($M) | $574,785 | $637,959 | $716,924 | +12% |
| Operating income ($M) | $36,852 | $68,593 | $79,975 | +17% |
| Operating margin | 6.4% | 10.8% | 11.2% | +0.4 pts |
| Net income ($M) | $30,425 | $59,248 | $77,670 | +31% |
Amazon's core business has become dramatically more efficient — operating margin has nearly doubled since 2023. Net income also received a boost from roughly $15.2 billion in investment-related gains (primarily from its Anthropic stake), which inflated the bottom line above what operations alone produced.
Several one-time charges in 2025 obscured an even stronger underlying result.
| Item | Amount |
|---|---|
| FTC lawsuit settlement | $2.5B |
| Italy tax/legal settlements + asset write-downs | $2.4B |
| Severance costs (role eliminations) | $2.7B |
| Total one-time charges (approx.) | ~$7.6B |
These charges, recorded mostly in "Other operating expense (income), net," "Fulfillment," and "Technology and infrastructure," reduced reported operating income meaningfully. Adjusted for these items, underlying profitability would have been noticeably higher.
Where does Amazon's revenue come from?
AWS is the profit engine — it generates more than half of total operating income on less than 18% of revenue.
| Segment | 2024 Net Sales | 2025 Net Sales | Change | 2025 Operating Income | 2025 Op. Margin |
|---|---|---|---|---|---|
| North America | $387,497M | $426,305M | +10% | $29,619M | 6.9% |
| International | $142,906M | $161,894M | +13% | $4,750M | 2.9% |
| AWS | $107,556M | $128,725M | +20% | $45,606M | 35.4% |
AWS grew the fastest and is by far the most profitable segment. North America is a large, steady contributor, while International, though now consistently profitable, operates on thin margins.
Advertising is the fastest-growing major revenue line within retail, adding nearly $12 billion in a single year.
| Revenue Line | 2023 | 2024 | 2025 | Change (2024–2025) |
|---|---|---|---|---|
| Advertising services ($M) | $46,906 | $56,214 | $68,635 | +22% |
| AWS ($M) | $90,757 | $107,556 | $128,725 | +20% |
| Third-party seller services ($M) | $140,053 | $156,146 | $172,162 | +10% |
Advertising and AWS together accounted for the majority of incremental revenue growth, and both carry higher margins than the core retail business — making their continued expansion important to overall profitability.
Does Amazon generate cash?
Amazon is generating cash at a record pace, but is ploughing almost all of it back into infrastructure.
| Metric | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Operating cash flow ($M) | $84,946 | $115,877 | $139,514 | +20% |
| Capex — property & equipment ($M) | $(52,729) | $(82,999) | $(131,819) | +59% |
| Free cash flow (GAAP, approx.) ($M) | $32,217 | $32,878 | $7,695 | -77% |
Capital expenditure — overwhelmingly directed at data centers and AI infrastructure for AWS — more than doubled over two years. As a result, free cash flow (operating cash minus capex) has compressed sharply even as the business generates more operating cash than ever.
How strong is Amazon's balance sheet?
Amazon holds a formidable liquidity cushion, though long-term debt has grown alongside the investment surge.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash & equivalents ($M) | $78,779 | $86,810 | +10% |
| Marketable securities ($M) | $22,423 | $36,219 | +61% |
| Total liquidity ($M) | $101,202 | $123,029 | +22% |
| Long-term debt ($M) | $52,623 | $65,648 | +25% |
Amazon issued $15 billion in new senior notes in November 2025, pushing total debt higher — but its liquidity position also expanded, and the company has an additional $20 billion in undrawn revolving credit facilities. Debt maturities are spread out over many years (weighted-average remaining life of about 14 years), limiting near-term refinancing pressure.
A massive, unrealized gain on the Anthropic investment has reshaped the balance sheet's equity side.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total stockholders' equity ($M) | $285,970 | $411,065 | +44% |
| Accumulated other comprehensive income ($M) | $(34) | $28,230 | +$28.3B |
The $28 billion swing in accumulated other comprehensive income (a component of equity) is almost entirely driven by unrealized gains on Amazon's Anthropic convertible notes, which had an estimated fair value of roughly $45.8 billion at year-end against a cost basis of around $8 billion. This gain is not yet reflected in net income and could fluctuate significantly with Anthropic's valuation.