What Management Said
Read the full Q2 2025 transcript ↗Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings, or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore our actual results could differ materially from our guidance. Today we're reporting $167.7 billion in revenue, up 12% year over year, excluding the impact from foreign exchange rates.
Operating income was $19.2 billion, up 31% year over year, and trailing 12-month free cash flow was $18.2 billion. Outputs are metrics like revenue or operating margin, but of course, you can't manage at the output level. We've taken another step forward in selection these past few months, headlined by the much-requested return of Nike's products to Amazon's retail store. It's one of the reasons our everyday essentials growth outpaced the rest of the business globally and represented one out of every three units sold.
Perhaps the clearest outputs are the rate at which our stores business grew this past quarter and the success we saw in our recent Prime Day event. This year's Prime Day was our biggest ever, with record sales, number of items sold, and number of Prime sign-ups in the three weeks leading up to the Prime Day. What happens when we deplete the inventory we forward bought or that our selling partners forward deployed in advance of the tariffs going into effect? What we can share is what we've seen thus far, which is that through the first half of the year, we haven't yet seen diminishing demand nor prices meaningfully appreciating.
- Worldwide operating income was $19.2B, up 31% year over year and $1.7B above the high end of guidance.
- North America segment operating income rose to $7.5B (+$2.5B YoY) with operating margin of 7.5%, up 190bps YoY.
- International segment operating income reached $1.5B (+$1.2B YoY) with operating margin of 4.1%, up 320bps YoY, continuing a ~700bps improvement over the prior 10 quarters.
- Advertising revenue grew 22% YoY to $15.7B, driven by sponsored products and strong store traffic.
- AWS grew 17.5% YoY to a $123B+ annualized run rate; backlog reached $195B, up ~25% YoY.
- Biggest-ever Prime Day with record sales, items sold and Prime sign-ups; everyday essentials outpaced the rest of the business at one of every three units sold.
- Record delivery speeds: 30% more items delivered same-/next-day in the U.S. YoY; deployed the one-millionth robot and rolled out DeepFleet AI (10% robot travel efficiency gain).
- Third-party seller unit mix hit a record 62%, up 100bps YoY; trailing 12-month free cash flow of $18.2B.
- AWS segment operating margin fell from a record 39.5% in Q1 to 32.9% in Q2; about half of the decline was a seasonal step-up in stock-based compensation, with additional headwinds from higher depreciation and unfavorable FX.
- AWS remained capacity-constrained with more demand than supply (power the biggest constraint); Jassy said full resolution would take several quarters, not a couple.
- AWS's 17.5% growth rate continued to trail the percentage growth of the #2 and #3 cloud players (off a larger base).
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Net sales | Q3 2025 | $174.0B-$179.5B |
| Operating income | Q3 2025 | $15.5B-$20.5B |
| FX impact on revenue | Q3 2025 | ~130bps favorable |
| Quarterly cash CapEx | H2 2025 | ~$31.4B/quarter (Q2 reasonably representative) |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Worldwide revenue | +12% ex-FX ($167.7B) | Broad-based strength across stores, ads and AWS; FX a $1.5B favorable impact; worldwide paid units +12%. |
| Worldwide operating income | +31% ($19.2B) | Cost-effective innovation and transportation/productivity gains across all segments; $1.7B above the high end of guidance. |
| AWS revenue | +17.5% ($30.9B) | Growth in both generative-AI and non-AI workloads as enterprises restart migrations; $123B annualized run rate. |
| AWS operating income | n/a ($10.2B) | Margin of 32.9%, down from 39.5% in Q1 on seasonal stock-based comp, higher depreciation from CapEx, and FX. |
| North America operating income | +$2.5B ($7.5B) | Transportation productivity, improved inventory placement and leverage on high unit volumes; margin 7.5% (+190bps). |
| International operating income | +$1.2B ($1.5B) | Established-country productivity plus emerging-market progress; margin 4.1% (+320bps). |
| Advertising revenue | +22% ($15.7B) | Sponsored products, strong store traffic and full-funnel offerings (DSP, Prime Video, live sports). |
| Cash CapEx | n/a ($31.4B) | Primarily AWS AI capacity and custom silicon (Trainium) plus fulfillment/transportation network investment. |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AWS capacity vs. demand | Supply constraints hoped to ease by back half of 2025 | More demand than capacity; power the single biggest constraint; several quarters to resolve | — |
| AWS segment margin | Record 39.5% in Q1 2025 | 32.9% in Q2 2025 on seasonal SBC, depreciation and FX | — |
| Tariffs | Concern over retail price and consumption impact | No diminished demand or broad ASP increases seen in first half of 2025 | — |
| Custom silicon (Trainium2) | Ramping capacity | Backbone of Anthropic's newest Claude models and Bedrock; ~30-40% better price/performance than GPUs | — |
| International margins | ~700bps improvement over prior 10 quarters | 4.1% margin, up 320bps YoY | — |
Q&A Summary
More on Amazon Com Inc
See how Top Bucket AI works for your firm
Request DemoStay ahead of private markets
Research and market intelligence for private-markets professionals.
You're subscribed.
Thanks for signing up.