Amazon | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 213.39 B

Revenue: As of FY2025 Q4, the actual value is USD 213.39 B, beating the estimate of USD 211.23 B.

EPS: As of FY2025 Q4, the actual value is USD 1.95, missing the estimate of USD 1.9596.

EBIT: As of FY2025 Q4, the actual value is USD 24.53 B.

Fourth Quarter 2025 Financial Performance

• Net Sales: 亚马逊 (Amazon.com, Inc.) reported a 14% increase in net sales to $213.4 billion, compared to $187.8 billion in the fourth quarter of 2024. Excluding a $2.8 billion favorable impact from foreign exchange rates, net sales grew by 12% year-over-year.
  • North America Segment Sales: Sales for the North America segment rose 10% year-over-year to $127.1 billion.
  • International Segment Sales: The International segment’s sales increased by 17% year-over-year to $50.7 billion, or 11% excluding changes in foreign exchange rates.
  • AWS Segment Sales: Amazon Web Services (AWS) segment sales grew 24% year-over-year to $35.6 billion.
• Operating Income: Operating income increased to $25.0 billion, up from $21.2 billion in the fourth quarter of 2024. This figure includes special charges totaling $2.44 billion, comprising $1.1 billion for tax disputes/lawsuit, $730 million in severance costs, and $610 million in asset impairments; without these, operating income would have been $27.4 billion.
  • North America Segment Operating Income: The North America segment’s operating income was $11.5 billion, an increase from $9.3 billion in the fourth quarter of 2024.
  • International Segment Operating Income: The International segment’s operating income was $1.0 billion, a decrease from $1.3 billion in the fourth quarter of 2024.
  • AWS Segment Operating Income: The AWS segment’s operating income reached $12.5 billion, up from $10.6 billion in the fourth quarter of 2024.
• Net Income: Net income increased to $21.2 billion, compared with $20.0 billion in the fourth quarter of 2024.

Full Year 2025 Financial Performance

• Net Sales: For the full year 2025, net sales increased 12% to $716.9 billion, compared with $638.0 billion in 2024. Excluding a $4.4 billion favorable foreign exchange impact, net sales grew 12%.
  • North America Segment Sales: North America segment sales increased 10% year-over-year to $426.3 billion.
  • International Segment Sales: International segment sales increased 13% year-over-year to $161.9 billion, or 10% excluding changes in foreign exchange rates.
  • AWS Segment Sales: AWS segment sales increased 20% year-over-year to $128.7 billion.
• Operating Income: Operating income for the full year increased to $80.0 billion, compared with $68.6 billion in 2024.
  • North America Segment Operating Income: North America segment operating income was $29.6 billion, up from $25.0 billion in 2024.
  • International Segment Operating Income: International segment operating income was $4.7 billion, compared with $3.8 billion in 2024.
  • AWS Segment Operating Income: AWS segment operating income was $45.6 billion, up from $39.8 billion in 2024.
• Net Income: Net income for the full year increased to $77.7 billion, compared with $59.2 billion in 2024.

Cash Flow (Trailing Twelve Months - TTM)

• Operating Cash Flow: Operating cash flow increased 20% to $139.5 billion for the trailing twelve months, up from $115.9 billion for the trailing twelve months ended December 31, 2024.
• Free Cash Flow: Free cash flow decreased to $11.2 billion for the trailing twelve months, significantly down from $38.2 billion for the trailing twelve months ended December 31, 2024. This decrease was primarily driven by a $50.7 billion year-over-year increase in purchases of property and equipment, net of proceeds from sales and incentives, reflecting investments in artificial intelligence.

Key Operational Metrics and Highlights

• Advertising Services: Advertising services revenue grew 23% year-over-year in Q4 2025 to $21.317 billion.
• AWS Custom Chips Revenue: Trainium and Graviton custom chips have a combined annual revenue run rate of over $10 billion, growing at a triple-digit percentage year-over-year.
• Amazon Connect Annualized Revenue: Amazon Connect is a $1 billion annualized revenue run rate business, growing over 30%.
• Rufus Incremental Sales: The AI shopping assistant, Rufus, helped deliver nearly $12 billion in incremental annualized sales last year.
• Worldwide Shipping Costs: Worldwide shipping costs increased by 10% year-over-year in Q4 2025 to $31.492 billion.
• Employees: The total number of full-time and part-time employees was 1,576,000, a 1% increase year-over-year.

Outlook for First Quarter 2026

亚马逊 (Amazon.com, Inc.) anticipates net sales to range between $173.5 billion and $178.5 billion for the first quarter of 2026, representing a growth of 11% to 15% compared with the first quarter of 2025, including an estimated 180 basis points favorable impact from foreign exchange rates. Operating income is projected to be between $16.5 billion and $21.5 billion, compared with $18.4 billion in the first quarter of 2025, factoring in approximately $1 billion of higher year-over-year 亚马逊 (Amazon.com, Inc.) Leo costs as the company scales in 2026, alongside investments in quick commerce and sharper prices in its international stores business.

Non-GAAP Financial Measures

亚马逊 (Amazon.com, Inc.) utilizes non-GAAP financial measures such as free cash flow and the effect of foreign exchange rates on its consolidated statements of operations. Free cash flow is defined as cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives”, with a focus on long-term, sustainable growth, though it has limitations as it omits certain cash flow components. The effect of foreign exchange rates is provided to illustrate operating results had foreign exchange rates remained consistent with the comparable prior year period.