Amazon Q1 Earnings Report: Revenue Grows by 9% to $1556.67 Billion, Net Profit Soars by 64%

[Ebrun Original] On May 2nd, Amazon released its financial report for the first quarter of 2025. The report shows that Amazon's net sales in the first quarter were $1556.67 billion, an increase of 9% compared to the same period last year; net profit was $17.127 billion, an increase of 64% compared to the same period last year; diluted earnings per share were $1.59, a 62% increase from the same period last year; operating cash flow for the 12 months ended March 31, 2025 was $113.9 billion, a 15% year-on-year increase; free cash flow was $25.9 billion, a 48% year-on-year decrease.

(Chart of Amazon's financial data comparing the past five quarters, in U.S. dollars)

By business segment, in the first quarter of 2025, Amazon's online store business net sales were $574.07 billion, a 5% year-on-year increase; physical store business net sales were $55.33 billion, an approximate 6.4% year-on-year increase; subscription services (including Prime members, e-books, and non-AWS subscriptions) net sales were $117.15 billion, an approximate 9.3% year-on-year increase; AWS net sales were $292.67 billion, an approximate 16.9% year-on-year increase.

Based on regional split, in the first quarter of 2025, Amazon's net sales in the North America market (the United States and Canada) were $928.9 billion, a 7.6% year-on-year increase, with operating profit at $58.41 billion, a 17% year-on-year increase; net sales in international business (United Kingdom, Germany, France, Japan, and China) were $335.13 billion, an approximate 4.9% year-on-year increase, with operating profit at $10.17 billion, a 13% year-on-year increase.

The financial report shows that Amazon's net sales growth in the first quarter has been the slowest since the fourth quarter of 2020 (with a year-on-year growth rate in the first quarter slowing down from 10% in the fourth quarter to the high single digits) and the EPS earnings growth (first-quarter EPS growth slowed to approximately 62% from 86% in the fourth quarter) has also slowed from the previous quarter but remains stronger than analyst expectations. At the same time, during the quarter, Amazon's operating profit margin was expected to decrease slightly compared to the analysts' expectations, but instead further increased, marking the fourth consecutive quarter of record high for a single quarter.

In addition, Amazon expects net sales for the second quarter of the 2025 fiscal year to be between $159.0 billion and $164.0 billion, a year-on-year growth of 7% to 11%, which includes an expected negative impact of approximately 10 basis points from changes in exchange rates; operating profit is expected to be between $13.0 billion and $17.5 billion, while operating profit in the same period of the 2024 fiscal year was $14.7 billion.