Amazon reported third-quarter net sales of $180.2 billion, a 13 percent increase from the previous year, driven by artificial intelligence initiatives across its operations in Seattle.
The company’s Amazon Web Services segment generated $33 billion in revenue during the quarter, marking a 20 percent year-over-year increase. This performance reflects sustained demand for cloud computing services. North America operations contributed $160.3 billion in sales, up 11 percent from the same period in 2024. International sales reached $40.9 billion, showing a 14 percent rise year-over-year. These figures highlight the company’s expansion in key geographic areas.
President and CEO Andy Jassy attributed the results to artificial intelligence advancements. He stated, “We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business.” Jassy further explained, “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity.” He pointed out that the AWS growth rate matches levels not observed since 2022, indicating robust investment in computing resources.
In the retail stores division, Amazon has enhanced its fulfillment network through ongoing innovations. Jassy noted, “In Stores, we continue to realize the benefits of innovating in our fulfillment network, and we’re on track to deliver to Prime members at the fastest speeds ever again this year, 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.” These efforts aim to improve delivery efficiency for subscribers and broaden access in underserved regions.
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Operating income for the third quarter stood at $17.4 billion, matching the amount from the third quarter of 2024. This figure includes two special charges: $2.5 billion tied to a legal settlement with the Federal Trade Commission and $1.8 billion in estimated severance costs from planned role eliminations. Excluding these items, operating income would have totaled $21.7 billion.
Net income increased to $21.2 billion, or $1.95 per diluted share, compared to $15.3 billion, or $1.43 per diluted share, in the third quarter of 2024. For the trailing 12 months, operating cash flow rose 16 percent to $130.7 billion. Free cash flow, however, declined to $14.8 billion over the same period.
Amazon’s Rufus AI-powered shopping assistant now reaches 250 million customers. Among users of Rufus, 60 percent demonstrate a higher likelihood of completing purchases. The company introduced a new “Help Me Decide” AI feature, which supports product selection by analyzing browsing activity, search queries, shopping history, and user preferences.
Looking to the fourth quarter, Amazon projects net sales between $206 billion and $213 billion, representing 10 percent to 13 percent growth over the fourth quarter of 2024. Operating income is anticipated to range from $21 billion to $26 billion.
