Amazon Delivers Strong Q3 2025 Results, AWS Growth Accelerates — Stock Jumps Over 10%
Amazon Q3 2025 Earnings Overview
Amazon.com, Inc. (NASDAQ: AMZN) posted a strong third quarter for fiscal 2025, surpassing Wall Street’s expectations on both the top and bottom lines.
- Adjusted earnings came in at $1.95 per share, up roughly 33% year-over-year, significantly beating the consensus estimate of around $1.57.
- Revenue rose 13% to about $180.2 billion, ahead of estimates near $177.9 billion.
- The cloud division, Amazon Web Services (AWS), grew roughly 20% to $33 billion, exceeding expectations and marking its fastest growth rate since 2022.
These results reinvigorated investor confidence after a year in which Amazon’s stock had lagged many tech peers.
What’s Behind the Performance?
Cloud & AI Momentum
AWS remains a key driver of Amazon’s margin expansion and future growth story. The ~20% growth underscores renewed momentum in cloud demand and AI infrastructure.CEO Andy Jassy highlighted that Amazon added 3.8 gigawatts of capacity over the past year to support AI growth and infrastructure demand.
Advertising, Retail & Logistics
- The advertising business showed strong growth, bolstering margins.
- The retail division benefitted from robust consumer spending and improved logistics. While retail is more competitive, Amazon’s investments in delivery and efficiency remain key.
- The company continues to invest heavily in infrastructure, automation and its logistics network — costs that could weigh in the near term but position Amazon for long-term strength.
Guidance & Investor Sentiment
For Q4 2025, Amazon guided to approximately $209.5 billion in net sales and around $23.5 billion in operating income (midpoints). The strong Q3 beat and solid guidance helped drive the stock higher — Amazon jumped more than 10% in after-hours trading.
Implications & What to Watch
Market Reach & Competitive Position
Amazon’s resurgence in AWS growth helps assuage concerns that rivals such as Microsoft Corporation and Alphabet Inc. were out-pacing it in cloud infrastructure.
Margins & Investment Load
While revenue and earnings beat were impressive, Amazon continues to spend heavily on capital expenditures (capex), especially for AI, data centers and logistics. Margin pressure remains a consideration.
Guidance & Macro Risks
The Q4 outlook is positive, but macroeconomic factors — such as consumer spending trends, inflation, supply-chain constraints and regulatory risks — remain relevant. Additionally, sustaining AWS growth and margin improvements will be key.
Stock Valuation & Outlook
Despite the strong quarter, Amazon’s stock had under-performed many peers earlier in the year, meaning some of the positive market reaction may already reflect catch-up expectations. Still, analysts view this quarter as a potential inflection point.
Bottom Line
Amazon’s Q3 2025 earnings delivered a compelling “beat and raise” narrative: strong revenue growth, robust cloud performance and solid guidance for the holiday-season quarter. For investors, the report underscores that Amazon is still executing across its diversified businesses — e-commerce, cloud, advertising and logistics — while scaling into AI-driven infrastructure.
That said, the cost of growth remains high, and the next challenge will be sustaining momentum, improving margins and navigating a shifting macro backdrop.
