AMAZON COM (AMZN) Company Report

Amazon’s pretax U.S. profits rose 44–45% to $89.5 billion in 2025, while reported current U.S. taxes plunged about 87% to $1.2 billion.
On a cash basis, Amazon paid $2.8 billion in federal income taxes in 2025, down from over $7 billion in each of the prior two years.
The decline reflects the 2025 tax reforms (the “One Big Beautiful Bill”), which expanded accelerated-depreciation breaks and preserved R&D credits, benefiting Amazon’s capital-intensive AI data-center build-out.
During this period, Amazon reduced its workforce by roughly 30,000 jobs since October 2025, including about 16,000 corporate positions, as it shifts toward automation and AI.
The gap between soaring profits and low taxes has reignited bipartisan debate over corporate tax subsidies, underscored by the combined $315 billion segmented profits and $51 billion in breaks claimed by Amazon, Alphabet, Meta and Tesla (with Tesla paying zero tax) in 2025.

3 days ago

WSJ

Amazon raises 2026 capex outlook

AMZN

New Projects/Investments

Guidance Update

Amazon expects to spend up to $200 billion in 2026, about $50 billion above analyst estimates and well above the roughly $131 billion spent in 2025, driven by AI-focused data centers and infrastructure.
The company reported Q4 AWS revenue of $35.58 billion, marking 24% growth, the fastest pace in over a year and implying a $142 billion annualized run rate.
Advertising remains a key AI beneficiary, with Q4 ad sales of about $21.3 billion.
The capex surprise pressured Amazon’s shares, reviving debate over whether near-term returns will justify heavy AI investments, though some analysts defend it as investing from strength.

4 days ago

CNBC

Amazon reports Q4 2025 results

AMZN

Earnings

Guidance Update

New Projects/Investments

Amazon posted $213.4 billion in Q4 revenue, up 12% year-over-year (ex-FX), and $25 billion in operating income after $2.4 billion of special charges.
AWS revenue grew 24% y/y to $35.6 billion, achieving a $142 billion annualized run rate, with operating income of $12.5 billion.
North America revenue was $127.1 billion (+10% y/y) with a 9% operating margin; International revenue was $50.7 billion (+11% y/y ex-FX) with a 2.1% margin.
Full-year 2025 operating cash flow rose 20% to $39.5 billion; Q1 2026 guidance calls for $173.5–178.5 billion in net sales and $16.5–21.5 billion in operating income.
Amazon plans $200 billion of capital expenditures—mostly in AWS to fuel AI and core workloads—and added 3.99 GW of power capacity in 2025, aiming to double by end-2027.

4 days ago

Transcript

Amazon reports Q4 2025 results

AMZN

Earnings

Guidance Update

New Projects/Investments

Amazon reported Q4 2025 revenue of $213.4 billion, up 12% yoy, and operating income of $25 billion (including $2.4 billion of special charges).
AWS revenue reached $35.6 billion, grew 24% yoy with an annualized run rate of $142 billion, and operating income of $12.5 billion.
Full-year operating cash flow rose 20% yoy to $39.5 billion, and trailing twelve-month free cash flow was $11.2 billion.
Q1 2026 guidance: net sales of $173.5 billion to $178.5 billion (≈180 bps FX tailwind) and operating income of $16.5 billion to $21.5 billion.
The company plans approximately $200 billion in 2026 capital expenditures, predominantly in AWS capacity to support AI and core cloud demand.

4 days ago

Transcript

Amazon reports Q4 2025 results

AMZN

Earnings

Guidance Update

New Projects/Investments

Q4 revenue of $213.4 billion (+12% y/y excluding FX) and operating income of $25 billion; trailing twelve-month free cash flow of $11.2 billion
AWS revenue reached $35.6 billion (+24% y/y), driving an annualized run rate of $142 billion and operating income of $12.5 billion
Retail performance: North America revenue of $127.1 billion (+10% y/y) and International revenue of $50.7 billion (+11% y/y); Amazon Ads revenue was $21.3 billion (+22% y/y)
Amazon plans ~$200 billion in capital expenditures—predominantly in AWS to support core and AI growth—and expects Q1 2026 net sales of $173.5–178.5 billion with operating income of $16.5–21.5 billion

4 days ago

Transcript

Amazon.com announces Q4 2025 results

AMZN

Earnings

Net sales rose 14% year-over-year to $213.4 billion in Q4 2025 (+12% ex-FX)
North America sales reached $127.1 billion (+10%), International sales were $50.7 billion (+17%; +11% ex-FX), and AWS sales grew 24% to $35.6 billion
Operating income increased to $25.0 billion from $21.2 billion; excluding $2.44 billion of special charges, it would have been $27.4 billion
Net income rose to $21.2 billion, or $1.95 per diluted share, from $20.0 billion, or $1.86 per share

4 days ago

8-K

Amazon.com announces Q4 2025 results

AMZN

Earnings

Guidance Update

Net sales in Q4 2025 rose 14% to $213.4 billion, driven by 10% growth in North America to $127.1 billion, 17% growth internationally to $50.7 billion, and 24% growth at AWS to $35.6 billion.
Operating income climbed to $25.0 billion from $21.2 billion, including $2.44 billion in special charges; excluding these charges, operating income would have been $27.4 billion.
Net income reached $21.2 billion ($1.95 per diluted share), up from $20.0 billion ($1.86 per diluted share) in Q4 2024.
Q1 2026 guidance forecasts net sales of $173.5 billion to $178.5 billion (up 11–15% YoY) and operating income of $16.5 billion to $21.5 billion, versus $18.4 billion in Q1 2025.

4 days ago

Press Release

AWS outlines AI deployment challenges and infrastructure strategy at Cisco AI Summit

AMZN

AWS stressed the need to define clear success metrics for AI proofs-of-concept—highlighting a hospital use case where ambient‐listening AI reduced doctor attrition rather than cutting costs as originally expected.
AWS underscored its proprietary Trainium silicon strategy to improve AI workload price-performance, aiming to lower customer costs and fuel a growth flywheel through high-margin chip offerings.
AWS detailed global infrastructure scaling hurdles, including data center build-outs, power commitments, and hardware lifecycle planning—noting it remains sold out of and has never retired its A100 servers due to ongoing demand.
In response to rising data sovereignty concerns, AWS launched the EU Sovereign Cloud, a separate EU-incorporated entity with independent governance ensuring all customer data and metadata remain within EU jurisdiction.
AWS advised CIOs to deploy AI agents with embedded guardrails—for example, using Agent Core—to mitigate security and operational risks and safely accelerate internal AI adoption.

6 days ago

Transcript

AWS unveils AI-first cloud strategy at Cisco AI Summit

AMZN

Product Launch

New Projects/Investments

AWS will integrate AI into every application via the new Bedrock platform, offering native model choice, security, and ecosystem integration on AWS infrastructure.
AWS expects to improve cost performance through its custom Trainium chips—targeting better price/performance and potentially lower customer prices despite high GPU margins.
AWS added just under 4 GW of data center capacity in the past year, with a planning horizon spanning 20–30 year amortization for facilities and multi-year server lifecycles.
AWS launched the EU Sovereign Cloud, a fully separate EU-incorporated subsidiary with on-shore data, metadata, and governance to meet regional data sovereignty requirements.

6 days ago

Transcript

AWS outlines AI-first cloud strategy at Cisco AI Summit 2026

AMZN

Product Launch

AWS CEO Matt Garman stressed the importance of defining clear success metrics for AI deployments to transition from proofs of concept to production, illustrating with healthcare examples where AI reduced clinician attrition even if cost savings were initially unclear.
AWS is embedding AI and inference throughout its infrastructure via the Bedrock platform, offering customers broad model choice, VPC-level security, and integration with the wider AWS partner ecosystem.
AWS’s in-house Trainium chips aim to deliver superior price-performance versus NVIDIA GPUs, with AWS likely to pass cost savings to customers and fuel further demand growth.
Due to sustained demand and specific use-case requirements for high precision, AWS has never retired an NVIDIA A100 server and remains sold out of A100 capacity.
AWS launched the EU Sovereign Cloud, a fully EU-incorporated subsidiary with independent governance to ensure all data and metadata reside within EU borders, addressing national infrastructure sovereignty concerns.