Highlights

  • Amazon posted 13.4% year-on-year revenue growth to USD 180.2 billion in Q3FY25.
  • Net income surged 38.2% to USD 21.2 billion in Q3, aided by AWS strength and Anthropic gains.
  • AWS and OpenAI announced a USD 38 billion multi-year partnership to scale AI infrastructure.

Amazon.com, Inc. (NASDAQ:AMZN) operates a global e-commerce and cloud services platform, providing goods directly and via third-party vendors. It divides its operations into North America, International, and AWS segments.

The company continues to post notable profitability, surpassing the industry median on most margin measures. Its 50.8% gross margin, well above the 46.1% sector average, reflects efficient operations and the contribution of high-margin units such as AWS and advertising.

Amazon has reported results for the third quarter of fiscal year 2025 (Q3FY25), with total net sales reaching USD 180.2 billion, an increase of 13.4% compared to Q3FY24. This growth was supported by performance in Amazon Web Services (AWS), rising by 20%, expansion in North America retail (up 11%), and a 22% increase in advertising revenue that was driven by AI-powered personalization and Prime Day performance.

Net income attributable to common stockholders surged by 38.2% year-on-year to USD 21.2 billion. This was mainly due to higher operational profitability in AWS, improvements in fulfillment operations, and a notable non-operating gain of USD 9.5 billion from the Anthropic investment.

Net cash provided by operating activities year-to-date was USD 85.1 billion, a 21.1% increase from last year. However, cash and cash equivalents declined 15.1% year-on-year to USD 66.9 billion. The reduction was attributed to elevated capital expenditures, which totaled USD 89.9 billion year-to-date, as Amazon expanded its AWS infrastructure and invested heavily in AI capacity.

Recent Business Update

Amazon Web Services (AWS) and OpenAI have announced a major multi-year strategic partnership valued at USD 38 billion over seven years. This agreement will allow OpenAI to access hundreds of thousands of NVIDIA GPUs and other AWS infrastructure starting immediately, with the goal of full deployment by the end of 2026 and further expansion extending into 2027.

Company Outlook

Amazon’s Q3 outlook signals ongoing broad-based growth, fueled by AWS momentum and surging demand for AI and cloud infrastructure. Management anticipates near-term margin fluctuations due to large-scale investments in AI, fulfillment, and automation, but expects strong long-term margin expansion from efficiency and scale.

Capital expenditures are projected to reach USD 125 billion in 2025, with continued increases ahead, as Amazon prioritizes innovation in AI, faster delivery, and global retail expansion for sustained, high-margin growth.

Stock Information

Amazon’s stock gained around 13% over the past month. The shares are currently trading near the upper end of the 52-week average, with a high of USD 258.60 and a low of USD 161.43.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 04 November 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.