Amazon Q2 income, revenue top estimates; sales rise 13%
Amazon reported strong financial results for its second quarter.
But the online giant offered light operating income guidance for its current quarter, saying it expects operating income to fall between $15.5 billion and $20.5 billion, compared with $17.4 billion in the year-ago quarter. Analysts were expecting $19.48 billion.
Net income increased to $18.2 billion, or $1.68 per share, in the quarter ended June 30, compared with $13.5 billion, or $1.26 per diluted share, in second quarter 2024.
Operating income increased to $19.2 billion in the second quarter, compared with $14.7 billion in second quarter 2024. The operating income of its closely-watched web services segment (AWS) segment was $10.2 billion, compared with $9.3 billion in second quarter 2024.
Total net sales increased 13% to $167.7 billion. (The quarter did not include Amazon's annual Prime Day sales extravaganza, which was held July 8 to July 11 this year.)
Amazon’s online store sales rose 11% to $61.5 billion. Sales in Amazon’s physical stores, which includes Whole Foods Market and Amazon grocery stores, increased 7% to $5.6 billion.
North America segment sales increased 11% year-over-year to $100.1 billion International segment sales increased 16% year-over-year to $36.8 billion, or increased 11% excluding changes in foreign exchange rates.
AWS segment sales increased 17.5% year-over-year to $30.9 billion. Revenue in the company’s advertising unit rose 23%, to $15.6 billion.
“Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I’m excited for what lies ahead," Amazon president and CEO Andy Jassy stated in the earnings release.
In comments, David Silverman, senior director at Fitch Ratings, said that Amazon’s second quarter continued the company’s strong track record with double digit revenue growth across e-commerce and AWS, "demonstrating the business model’s resilience to broader macro volatility."
"While Fitch expect results to moderate somewhat as 2025 progresses given some pullbacks to both consumer and business spending, the company is well positioned to defend and gain share in a choppy near-term environment given its value positioning and ability to effectively manage through current issues including tariffs," Silverman said.
Since the quarter, Amazon noted it has launched generative AI tools to enhance the shopping experience, including “Hear the Highlights” to turn product summaries and reviews into audio clips, and “Enhance My Listing” to keep listings current and compelling. It also announced multi-billion dollar investments to expand cloud infrastructure and advance AI innovation in North Carolina, Pennsylvania, and Australia.
For its third quarter, Amazon expects net sales to be between $174.0 billion and $179.5 billion, or to grow between 10% and 13% compared with the year-ago quarter.
