Amazon.com, Inc. reported its financial results for the third quarter ending September 30, 2025, with net sales rising 13% to $180.2 billion compared to $158.9 billion in the same period last year. Excluding a favorable foreign exchange impact of $1.5 billion, net sales increased by 12%.
The North America segment saw an 11% year-over-year increase in sales to $106.3 billion, while international segment sales grew by 14% to $40.9 billion, or 10% excluding currency changes. Amazon Web Services (AWS) posted a 20% increase in sales, reaching $33.0 billion.
Operating income for the quarter was $17.4 billion, unchanged from the previous year’s third quarter. This figure includes special charges of $2.5 billion related to a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs tied mainly to planned role eliminations. Without these charges, operating income would have been $21.7 billion.
In terms of segment performance, North America operating income was $4.8 billion compared with $5.7 billion last year; excluding the FTC-related charge, it would have been $7.3 billion and also included severance costs from planned job cuts. International operating income was reported at $1.2 billion versus last year’s $1.3 billion and also reflected severance expenses.
AWS operating income reached $11.4 billion compared with last year’s $10.4 billion and included estimated severance costs as well.
Net income rose to $21.2 billion or $1.95 per diluted share from last year’s third-quarter net income of $15.3 billion or $1.43 per diluted share; this result includes pre-tax gains of $9.5 billion from investments in Anthropic, PBC.
Operating cash flow over the trailing twelve months increased by 16% to reach $130.7 billion compared with the prior period’s figure of $112.7 billion.
Free cash flow declined to $14.8 billion for the trailing twelve months due mainly to a significant increase—$50.9 billion—in purchases of property and equipment (net of proceeds), down from free cash flow of $47.7 billion for the previous twelve-month period.
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy, President and CEO of Amazon.com, Inc., adding: “AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY… In Stores, we continue to realize the benefits of innovating in our fulfillment network… expand same-day delivery of perishable groceries to over 2,300 communities by end of year, and double the number of rural communities with access to Amazon’s Same-Day and Next-Day Delivery.”
Among recent highlights:
– The company noted strong adoption for Trainium2 (its custom AI chip), now fully subscribed.
– Project Rainier launched an AI compute cluster using nearly half a million Trainium2 chips.
– New AWS EC2 servers were announced using NVIDIA Grace Blackwell Superchips.
– Over the past year Amazon added more than 3.8 gigawatts in power capacity for its cloud operations.
– New foundation models were introduced on Amazon Bedrock including those from OpenAI and Anthropic.
– The company expanded access to Kiro—a coding development environment—and launched Quick Suite agentic AI app for business users.
– AWS’s Transform tool saved customers about 700,000 hours in migration efforts so far this year.
– Connect (an AI-powered contact center solution) reached a run rate exceeding one-billion dollars annually.
– The company added new AWS regions including one in New Zealand.
– Recent agreements were signed with major clients such as Delta Air Lines and Volkswagen Group.
On logistics and retail:
– Access to Same-Day/Next-Day Delivery expanded among rural communities by 60% over four months.
– Perishable grocery delivery via Same-Day service now covers more than one thousand U.S cities/towns with plans for further expansion by end-of-year.
– Rufus (the store’s AI assistant) has been used by approximately 250 million customers this year; shoppers using Rufus are reportedly more likely to complete purchases.
Additional initiatives include partnerships allowing advertisers access through Amazon Ads on platforms like Netflix and Spotify; strong global viewership figures for original content such as “The Summer I Turned Pretty” Season Three; ongoing expansion into sports broadcasting including NBA coverage on Prime Video; new features on Alexa+ devices; progress on Project Kuiper satellite fleet deployment; introduction of Zoox robotaxi service in Las Vegas; wage increases for employees across several countries; commitments toward education through Future Ready 2030 ($2.5B investment); plans for seasonal hiring worldwide; continued investment into delivery partner programs; among others.
Looking ahead, Amazon expects fourth-quarter net sales between $206-$213 billion—an anticipated growth rate between ten percent and thirteen percent over Q4 2024—with operating income projected between $21-$26 billion under current assumptions regarding acquisitions or settlements.
A webcast conference call discussing these results will be available today at amazon.com/ir at 5:00 p.m ET / 2:00 p.m PT.
