Amazon Q1 2025 Earnings Followed Expectations as Surge for Ad Sales star-news.press/wp

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Amazon (Amzn-2.87%) Are reported for earnings in the first neighborhood after the past expectations in the Thursday.

Net sales increased by 9% to $ 155.7 billion, while net income reached $ 17.1 billion, or $ 1.59 per share, easily pouring Wall Street for $ 1.37 per share.

Home Numbers

North American sales came to $ 92.9 billion, and international sales hit $ 33.5 billion, climbing 8% and 5% compared to last year, respectively.

AWS, Amazon’s profit engine, revenue of $ 29.3 billion, and with the segments of operating income in climbing $ 11.5 billion – suggesting that the demand for the cloud and the load and remain strong.

The sale of Amazon’s sales advertisements surpassed and estimates, growing 19% compared to 13.9 billion dollars, after 13.7 billion analysts are expected.

However, the Amazon actions later sank 4% in the deadline, offering a little relief after the difficult beginning until 2025. years. Up to 20.5% to the year to this day, as investors, the macro presses, regulatory supervision and potential affected by trump cards for proposed tariffs.

Margins are still essential

The key metricity This quarter was Amazon’s operating margin, especially in North America. The company published a record 4.4% of the last quarter, initiated logistics efficiency and the larger prime minister. This quarter of 11.8% the result suggests that the swing hold – even as input costs and macro uncertainty are still high.

Cloud is still king

Amazon web services continue to drive a lion’s share of company profit. Going on Thursday, Venbush analysts expected another strong display, noting that the AS AS AS would help push the AWS results above the “expectations of whispers”. Amazon proves to publish the sale of AWS segments in the amount of $ 29.3 billion compared to the past trimester, and the reserves of the AWs Segment of Operating Revenues of $ 11.5 billion compared to $ 7.2 billion.

For a year, it is a 17% growth rate, a number number for the underlining director Andy Jasy’s recent comments that Amazon is the world’s largest startup, or at least the goals to function. Still, whether the result shines as bright after Microsoft (MSFT-0.92%) Banger quarters – with a cloud growth nearly double Amazon – the question is open.

AWS vs. Azure

Amazon’s neighborhood was strong – but one next to Microsoft, she discovered the story of two cloud strategies. 33% annual growth of 33% surpassed the AWS win of 17%, and Microsoft emphasized that almost half of the growth of the Azure came from the AI ​​war and the Amazon transparency level has not yet coincided. Microsoft also stated 30% performance reinforcements through their data and more than 50% drop in costs, key efficiency measurements related to the ROI infrastructure.

While fair – and more and more standard – to compare two giants in the cloud, there are shades. AWS remains the leader in the revenue market, but the Azur grew faster, especially with customers companies who already use Microsoft Tools. Microsoft service connectivity such as Office 365 can inflate azure income, while the AWS accounting strives to reflect direct infrastructure and cloud services. But in terms of investor enthusiasm, Microsoft clarity and momentum around AI have been going out in this quarter. Can Amazon narrow that the narrative gap may depend on what execs are willing to share.

Forward leadership

Looking in advance, Amazon designed net sales in another quarter between $ 159 billion and 164 billion dollars, which represents a year of 7% to 11%. The company expects the land operating revenue between $ 13 billion and $ 17.5 billion, compared to 14.7 billion dollars in Q2 last year.

The Management Board noticed approximately 10 base points by and stressed that, while the external environment remain complex, they focused on the control of intake that may – including cost gains, efficiency and strategic investment in areas of high demand such as AI and logistics.

Tariffs and odds

This week, the company has made titles to show the costs related to the checkout at the exit to the shopping site in Haul – a sign only as the global dynamics and the dynamics of the source, even while Amazon quickly erupted the rumor. But on the invitation, the management suggested that it can be upside down for Amazon even in economic time to lower, and customers transfer their shopping habits, but they continue to buy with Amazon. His wide selection of SKU with low prices will be strength, says management.