Amazon Q1 2025 Earnings: AWS Revenue Accelerates, Stock Hits All-Time High
Amazon reported record Q1 2025 results, driven by accelerating AWS revenue growth and improved profitability. The company beat analyst estimates, sending the stock to an all-time high.
Key Numbers
Amazon (NASDAQ: AMZN) reported record first-quarter 2025 financial results, surpassing analyst expectations as AWS revenue growth accelerated and profit margins improved. The stock rose 3% in after-hours trading to an all-time high of $210.
Key Financial Results
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Revenue | $143.3B | $127.4B | +12.5% |
| Operating Income | $15.3B | $9.0B | +70% |
| EPS (diluted) | $1.59 | $0.98 | +62% |
| AWS Revenue | $25.0B | $21.4B | +17% |
Key Highlights
- AWS Acceleration: AWS revenue grew 17% YoY, up from 13% in Q4 2024, signaling a rebound in cloud spending.
- Margin Expansion: Operating margin improved to 10.7% from 7.1% a year ago, driven by cost cuts in retail and logistics.
- Advertising Growth: Ad revenue rose 24% to $11.8B.
- Free Cash Flow: Trailing twelve-month free cash flow reached $14.2B.
Guidance
Amazon guided Q2 2025 revenue between $144B and $149B, with operating income between $10B and $14B. Management highlighted continued investment in generative AI and AWS data center expansion.
Stock Impact
The stock gained 3% in after-hours trading to $210, a new all-time high. The strong results reinforced investor confidence in Amazon's ability to deliver profitable growth.
What This Means for Investors
Amazon's results demonstrate the strength of its diversified business model, with AWS reaccelerating and retail margins improving. However, investors should monitor capital expenditure on AI and potential regulatory risks. While valuations remain elevated, the results support a positive outlook for the company.
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