Amazon reports higher sales and earnings for 3Q, helped by its
fast-growing web services business
[October 31, 2025] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Amazon posted higher fiscal third quarter profit and
sales compared with a year ago, fueled by accelerating growth in its
cloud computing business and strong spending by its customers looking
for low prices at a time when inflation is resurging.
The results, announced Thursday, beat Wall Street expectations. The
company's prominent cloud computing arm also surpassed analysts'
expectations, rising 20%. But Amazon issued a cautious sales outlook for
the fiscal fourth quarter.
Shares, however, soared nearly 13% in after-hours trading.
Analysts are analyzing Amazon's results, along with other retailers'
earnings performances, to get insight into how shoppers are spending
heading into the holiday season and how the online behemoth is managing
cost increases from President Donald Trump's tariffs.
But Amazon, based in Seattle, is also under pressure to shore up
confidence among investors that its computing arm Amazon Web Services is
just as powerful as Microsoft’s Azure and Google’s Google Cloud
platform. Amazon delivered better-than-expected 20% growth for AWS,
following a 17.5% growth in the fiscal second quarter. Andy Jassy,
president and CEO of Amazon, noted in a statement that AWS is growing at
a pace it hasn't seen since 2022.
Last week Amazon grappled with a massive outage of AWS after a problem
disrupted internet use around the world for most of the day, taking down
a broad range of online services, including social media, gaming, food
delivery, streaming and financial platforms.
Jassy also noted Amazon is seeing strong momentum and growth across
Amazon as artificial intelligence drives “meaningful improvements in
every corner of our business.”
Jassy also pointed out that in stores, Amazon continues to realize the
benefits of innovating in its fulfillment network, and it's on track to
deliver to Prime members at the fastest speeds ever again this year,
expand same-day delivery of perishable groceries to over 2,300
communities by end of year, and double the number of rural communities
with access to Amazon’s same-day and next-day delivery.
Amazon is rapidly automating its warehouses, raising big questions on
how many workers it will need in the future.
In fact, Amazon announced on Tuesday that it’s cutting about 14,000
corporate jobs as it ramps up spending on artificial intelligence and
cuts costs elsewhere. Teams and individuals impacted by the job cuts
were notified Tuesday. Amazon has about 350,000 corporate employees and
a total workforce of about 1.56 million. The cuts amount to about a 4%
reduction in its corporate workforce.
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An Amazon logo is seen at an Amazon event in New York, Tuesday,
Sept. 30, 2025. (AP Photo/Seth Wenig, File)
 Jassy told analysts that the
announcement on job cuts wasn't “really financially driven and it's
not even really AI driven."
“It's culture,” he said. “And if you grow as fast as we did for
several years, the size of businesses, the number of people, the
number of locations, the types of businesses you’re in, you end up
with a lot more people than what you had before, and you end up with
a lot more layers.”
Late last month, Amazon unveiled a new robotics
system — being tested in South Carolina — for its warehouses that
coordinates multiple arms to perform picking, stowing, and
consolidating tasks simultaneously. This technology effectively
collapses three assembly lines into one, the company said.
Amazon is also testing an AI agent that helps human managers deploy
workers and avoid bottlenecks. The system allows operators to spend
less time analyzing dashboards and more time coaching teams,
creating safer work environments, the company said.
Amazon's strategies seem to be powering its latest results.
Amazon posted net income of $21.12 billion, or $1.95 per share, for
the quarter ended Sept. 30. That's up from $15.33 billion, or $1.43
per share, a year ago.
Analysts had expected $1.57 per share for the quarter, according to
FactSet.
Amazon’s sales rose to $180.2 billion, up from $158.88 billion in
the year ago period.
Analysts had expected $177.91 billion, according to FactSet.
The number of items that Amazon sold in the latest period increased
11%, the company said.
In late July, Jassy touted its more than 2 million sellers in its
third-party marketplace, all with different strategies of whether to
pass on higher costs to shoppers. He also told analysts that it
hadn't seen “diminishing demand nor prices meaningful appreciating."
Amazon said it expects sales for the fiscal fourth quarter to be in
the range of $206 billion to $213 billion.
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