Amazon Q2 2025 Earnings Beat Expectations with Strong AI and AWS Growth
Amazon Q2 2025 Earnings Highlights
Amazon reported its second-quarter 2025 earnings with a 13% year-over-year revenue increase to $167.7 billion, surpassing analyst expectations of $162.1 billion. Earnings per share (EPS) were $1.68, well above the predicted $1.33. Operating income rose to $19.2 billion, up from $14.7 billion in the previous year, reflecting strong operational performance.
Segment Performance
- North America: Sales grew 11% to $100.1 billion with $7.5 billion in operating income.
- International: Sales rose 16% to $36.8 billion (11% excluding foreign exchange impact) with $1.5 billion in operating income.
- AWS (Amazon Web Services): Sales jumped 17.5% to $30.9 billion with operating income of $10.2 billion.
AI and Innovation Momentum
CEO Andy Jassy emphasized AI as a transformational factor for customer experience and operational efficiency. Key AI initiatives include expanding Alexa+, launching AI models like DeepFleet to optimize robotics, and introducing new developer tools such as Kiro IDE and Strands for AI agents. AWS continued to grow robustly, supported by new AI-powered services and partnerships with companies like Anthropic.
Advertising and Retail Highlights
Amazon’s advertising revenue surged 22% year-over-year to $15.7 billion, driven by retail media and new Prime Video ad inventory. Retail growth was boosted by the biggest-ever Prime Day event and expansion of Same-Day and Next-Day delivery to smaller U.S. communities. New brand storefronts and AI-powered shopping features, including audio product reviews, were also introduced.
Financial Outlook
The company forecasts third-quarter 2025 revenue between $174 billion and $179.5 billion, indicating continued growth of 10-13%. Operating income guidance is set between $15.5 billion and $20.5 billion, reflecting cautious optimism amidst macroeconomic variables including tariffs and trade policies.
Summary
Amazon’s Q2 result highlights its ongoing transformation into an AI-driven, cloud-powered enterprise with strong growth in AWS and advertising, balanced by prudent investments in infrastructure. Investors and analysts remain watchful of the company’s AI strategy execution and capital spending to sustain long-term margin expansion.
