Amazon Com — Financial Results
Amazon Revenue Crossed $716 Billion in 2025, Growing 12% Across All Segments
| Segment | 2024 Revenue | 2025 Revenue | Growth |
|---|---|---|---|
| North America | $387.5B | $426.3B | 10% |
| International | $142.9B | $161.9B | 13% |
| AWS | $107.6B | $128.7B | 20% |
| Total | $638.0B | $716.9B | 12% |
Every segment grew, with AWS (Amazon's cloud computing business) leading the way at 20%. North America's growth was driven by more unit sales, advertising, and subscriptions. The 12% overall growth is consistent with the prior year's pace, suggesting the business has found a durable expansion rate.
AWS Profit Engine Keeps Growing, Now Generating $45.6 Billion in Operating Income
| 2024 | 2025 | |
|---|---|---|
| AWS Operating Income | $39.8B | $45.6B |
| North America Operating Income | $25.0B | $29.6B |
| International Operating Income | $3.8B | $4.8B |
Operating income (what's left after running costs) rose from $68.6B to $80.0B company-wide. AWS, while contributing only 18% of revenue, generates the majority of profit — showing just how lucrative cloud services are compared to retail. International is consistently profitable now, which wasn't always the case.
Capital Expenditures Nearly Doubled to $128 Billion, Squeezing Free Cash Flow
| 2024 | 2025 | |
|---|---|---|
| Operating Cash Flow | $115.9B | $139.5B |
| Capital Expenditures | $77.7B | $128.3B |
| Free Cash Flow | $38.2B | $11.2B |
Free cash flow (operating cash minus spending on property and equipment) dropped sharply from $38.2B to $11.2B, even as the business generated more cash from operations than ever. The culprit is a massive ramp in infrastructure spending — primarily data centers to support AWS growth — which Amazon says it expects to increase further in 2026. This is a deliberate investment, not a sign of distress, but investors should know the business is in a heavy-spending phase.
A $2.5 Billion FTC Settlement and Severance Costs Hit 2025 Profits
Other operating expenses jumped from $763M to $4.6B in 2025, mostly due to a settlement with the Federal Trade Commission (the U.S. regulator that oversees competition and consumer protection) and an estimated $2.7B in severance costs tied to planned layoffs. These are largely one-time charges, so underlying profitability is stronger than the headline numbers suggest — but they're real cash out the door.
A $15 Billion Windfall from the Anthropic Investment Boosted Net Income
Amazon's stake in Anthropic (an AI company) was revalued upward, contributing approximately $15.2B to "other income" in 2025, compared to a $2.3B loss in 2024 from its Rivian investment. This is a paper gain (not cash received) and can swing dramatically in either direction in future years. It meaningfully inflated reported net income and is worth separating from the core operating performance when assessing the business.
Q1 2026 Guidance Points to Continued Growth but Acknowledges New Costs
Amazon guided Q1 2026 net sales of $173.5B–$178.5B (11–15% growth) and operating income of $16.5B–$21.5B. Notably, management flagged roughly $1 billion in incremental costs from scaling Amazon Leo (an AI initiative) and increased investment in international stores and quick commerce (rapid delivery). The wide operating income range — a $5 billion spread — reflects genuine uncertainty about how these investments will land.