Amazon Sales Rise 13% to $180 Billion in Q3, AWS Revenue Jumps 20%

Amazon.com Inc. showcased a robust financial performance in its third quarter of 2025, reporting a significant surge in total revenue and continued acceleration in its cloud computing segment, Amazon Web Services (AWS). The e-commerce and tech giant’s net sales climbed 13% year-over-year to reach $180.2 billion for the quarter ended September 30, 2025, surpassing analyst expectations. This growth was largely propelled by a reacceleration in AWS revenue and strong contributions from its advertising services.

Strong Revenue Growth Across the Board

Amazon’s financial results for Q3 2025 painted a picture of broad-based strength across its diverse business segments. The reported net sales of $180.2 billion marked a substantial increase from the $158.9 billion recorded in Q3 2024. Domestically, sales in North America grew 11% year-over-year, reaching $106.3 billion. International sales also demonstrated healthy expansion, rising 14% to $40.9 billion, or 10% when accounting for foreign exchange rates.

Beyond its core retail operations, Amazon’s advertising services continued to be a significant growth driver, with revenue jumping 24% to $17.7 billion. This highlights the company’s expanding influence in the digital advertising landscape. Subscription services, including Amazon Prime memberships and digital content offerings, also contributed to the overall positive results, growing 11% to $12.6 billion.

AWS: A Cloud Powerhouse Reaccelerates

A standout performer in Amazon’s Q3 earnings was its cloud computing division, Amazon Web Services (AWS). AWS revenue surged 20% year-over-year, reaching $33 billion for the quarter. This represents its fastest growth rate since 2022, a reacceleration that was a key highlight for investors and analysts alike.

Amazon CEO Andy Jassy emphasized the robust demand in artificial intelligence (AI) and core infrastructure as primary drivers for AWS’s strong performance. He noted the company’s commitment to accelerating capacity, having added over 3.8 gigawatts in the past 12 months to support these initiatives. Investments in AI infrastructure, including the development of custom Trainium2 chips and the Project Rainier AI cluster, underscore Amazon’s strategic focus on maintaining its competitive edge in the evolving cloud and AI landscape.

Financial Performance Beyond Revenue

Amazon’s adjusted earnings per share (EPS) for Q3 2025 came in at $1.95, significantly exceeding Wall Street’s forecast of $1.56. Net income for the quarter increased to $21.2 billion, compared with $15.3 billion in Q3 2024.

Operating income stood at $17.4 billion for the third quarter, remaining consistent with the prior year’s period. However, this figure includes two notable special charges: a $2.5 billion legal settlement with the Federal Trade Commission and an estimated $1.8 billion in severance costs related to planned role eliminations. Without these combined charges of $4.3 billion, operating income would have been approximately $21.7 billion.

Strategic Insights from CEO Andy Jassy

In his communication to shareholders, CEO Andy Jassy highlighted the “strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business.” He specifically pointed to the reacceleration of AWS as a testament to this, attributing it to strong demand in AI and core infrastructure.

Jassy also touched upon innovations within Amazon’s fulfillment network, stating that the company is on track to deliver to Prime members at the fastest speeds ever. Furthermore, Amazon plans to expand same-day delivery of perishable groceries to over 2,300 communities and double the number of rural communities with access to Same-Day and Next-Day Delivery by the end of the year.

Conclusion

Amazon’s third-quarter 2025 earnings report underscores a period of strong financial health, with overall sales rising 13% to $180.2 billion and AWS revenue jumping 20%. The company successfully exceeded analyst expectations, driven by robust performance across its e-commerce, advertising, and cloud computing segments. The reacceleration of AWS, fueled by significant investments in AI and infrastructure, signals Amazon’s strategic focus on high-growth, high-margin areas. Despite special charges impacting reported operating income, the underlying business momentum, coupled with ongoing innovations in delivery and customer experience, positions Amazon for continued growth in the evolving global digital economy.