On October 30th, Eastern Time, Amazon released its financial results for the third quarter of fiscal year 2025. The report showed that Amazon's net sales in the third quarter were $180.169 billion, a 13% increase compared to $158.877 billion in the same period last year, or a 12% increase excluding the impact of currency fluctuations; net profit was $21.187 billion, a 38% increase compared to $15.328 billion in the same period last year; diluted earnings per share were $1.95, an increase compared to $1.43 in the same period last year.

Amazon's third-quarter revenue and diluted earnings per share both exceeded Wall Street analysts' previous expectations, and its outlook for fourth-quarter revenue also exceeded expectations, driving its after-hours stock price up nearly 14%, breaking a 52-week high.

Key Performance Highlights:

For the fiscal quarter ended September 30, Amazon reported net income of $21.187 billion, a 38% increase compared to $15.328 billion in the same period last year; diluted earnings per share were $1.95, up from $1.43 in the same period last year. Amazon's operating income for the third quarter was $17.422 billion, a slight increase compared to $17.411 billion in the same period last year.

Amazon's net sales for the third quarter were $180.169 billion, a 13% increase compared to $158.877 billion in the same period last year. Excluding the $1.5 billion positive impact of currency exchange rate fluctuations on Amazon's net sales, net sales for the third quarter increased by 12% compared to the same period last year.

Amazon's net product sales for the third quarter were $74.058 billion, up from $67.601 billion in the same period last year; net service sales were $106.111 billion, up from $91.276 billion in the same period last year.

Amazon's third-quarter revenue and diluted earnings per share both exceeded Wall Street analysts' expectations. Analysts had previously expected Amazon's third-quarter revenue to reach $177.8 billion, with diluted earnings per share of $1.58.

In August, Amazon projected that its net sales for the third quarter of fiscal year 2025 would be between $174 billion and $179.5 billion, representing year-over-year growth of 10% to 13%, including an expected positive impact of approximately 130 basis points from currency fluctuations; operating profit was projected to be between $15.5 billion and $20.5 billion, averaging $18 billion, an increase compared to $17.4 billion in the same period of fiscal year 2024.

Segment Performance:

• By Region:

Amazon's North American segment (United States and Canada) reported third-quarter net sales of $106.267 billion, an 11% increase compared to $95.537 billion in the same period last year; operating profit was $4.789 billion, a 15% decrease compared to $5.663 billion in the same period last year; operating profit margin was 4.5%, a decrease compared to 5.9% in the same period last year.

Amazon's international segment (UK, Germany, France, Japan, and China) reported net sales of $40.896 billion in the third quarter, a 14% increase compared to $35.888 billion in the same period last year (10% excluding currency effects). Operating profit was $1.199 billion, an 8% decrease compared to $1.301 billion in the same period last year. The operating margin was 2.9%, a decrease compared to 3.6% in the same period last year.

Amazon AWS cloud services reported net sales of $33.006 billion in the third quarter, a 20% increase compared to $27.452 billion in the same period last year (also a 20% increase excluding currency effects). Operating profit was $11.434 billion, a 9% increase compared to $10.447 billion in the same period last year (11% excluding currency effects). The operating margin was 34.6%, a decrease compared to 38.1% in the same period last year.

Amazon's sales from North America accounted for 59% of total sales in the third quarter, down from 60% in the same period last year; sales from the International segment accounted for 23%, unchanged from 23% in the same period last year; and sales from AWS cloud services accounted for 18%, up from 17% in the same period last year.

• By Service and Business Type:

Amazon's net sales from its online store in the third quarter were $67.407 billion, a 10% increase compared to $61.411 billion in the same period last year, or an 8% increase excluding the impact of currency exchange rates.

Amazon's net sales from its brick-and-mortar stores in the third quarter were $5.578 billion, a 7% increase compared to $5.228 billion in the same period last year, also a 7% increase excluding the impact of currency exchange rates.

Amazon's net sales from third-party seller services in the third quarter were $42.486 billion, a 12% increase compared to $37.864 billion in the same period last year, or an 11% increase excluding the impact of currency exchange rates.

Amazon's net sales from subscription services in the third quarter were $12.574 billion, an 11% increase compared to $11.278 billion in the same period last year, or a 10% increase excluding the impact of currency fluctuations.

Amazon's net sales from AWS cloud services in the third quarter were $33.006 billion, a 20% increase compared to $27.452 billion in the same period last year, also a 20% increase excluding the impact of currency fluctuations.

Amazon's net sales from other businesses in the third quarter were $1.415 billion, an 8% increase compared to $1.313 billion in the same period last year, or a 7% increase excluding the impact of currency fluctuations.

Operating Expenses:

Amazon's total operating expenses in the third quarter were $167.247 billion, an increase compared to $141.466 billion in the same period last year.

Of which:

• Cost of revenue was $88.67 billion, up from $80.977 billion in the same period last year;
• Fulfillment expenses were $27.679 billion, up from $24.66 billion in the same period last year;
• Technology and content expenses were $28.962 billion, up from $22.245 billion in the same period last year;
• Marketing expenses were $11.686 billion, up from $10.609 billion in the same period last year;
• General and administrative expenses were $2.875 billion, up from $2.713 billion in the same period last year;
• Other operating expenses were $2.875 billion, a significant increase from $262 million in the same period last year.

Cash Flow Information:

For the 12 months ended September 30, 2025, Amazon's operating cash flow was $130.7 billion, a 16% increase compared to the same period last year; for the 12 months ended September 30, 2024, Amazon's operating cash flow was $112.7 billion.

For the 12 months ended September 30, 2025, Amazon's free cash flow was $14.8 billion, a significant decrease compared to the same period last year, primarily due to a $50.9 billion increase in spending on property and equipment; for the 12 months ended September 30, 2024, Amazon's free cash flow was $47.7 billion.

Earnings Outlook:

Amazon expects its net sales for the fourth quarter of fiscal year 2025 to be between $206 billion and $213 billion, representing a year-over-year increase of 10% to 13%, which includes an expected positive impact of approximately 190 basis points from currency fluctuations. This guidance averages $209.5 billion and exceeds analysts' expectations. According to data from Yahoo Finance, the average forecast from 49 analysts is for Amazon's fourth-quarter revenue to reach $208.13 billion.

Amazon also projects operating profit for the fourth quarter of fiscal year 2025 to be between $21 billion and $26 billion, with an average of $23.5 billion, representing growth compared to $21.2 billion in the same period of fiscal year 2024.

Amazon stated that this outlook assumes no further business acquisitions, restructuring, or legal settlements.

Stock Price Movement:

On the day, Amazon's stock price fell $7.44 in regular trading on Nasdaq, closing at $222.86, a decrease of 3.23%. In after-hours trading that followed, ending at 6:01 p.m. ET on Thursday (6:01 a.m. Friday Beijing time), Amazon's stock price surged $31.15 to $254.01, an increase of 13.98%, breaking its 52-week high. Over the past 52 weeks up to Thursday's close in the U.S. stock market, Amazon's highest price was $242.52 and its lowest price was $161.38.