Amazon Q3 earnings, revenue top estimates
Amazon reported better-than-expected third-quarter results, fueled by growth across all its segments, including North America and its cloud division.
The Seattle-based tech giant's net income rose to $15.3 billion, or $1.43 per share, in the quarter ended Sept.30, compared to $9.9 billion, or $0.94 per share, in the year-ago period. Operating income increased to $17.4 billion, up from $11.2 billion.
Net sales increased 11% to $158.9 billion, ahead of estimates of. $157.29 billion. Amazon's North America segment sales increased 9% to $95.5 billion. International segment sales increased 12% to $35.9 billion.
Amazon reported increases across all its divisions. Sales at Amazon Web Services increased 19% year-over-year to $27.5 billion. Sales at the company' advertising business unit urged 19% to $14.3 billion.
"Amazon’s strong 3Q results, including 11% revenue growth, demonstrate its ongoing good execution and the benefits of its exposure to growing businesses including ecommerce, cloud computing, and digital advertising," said David Silverman, senior director, Fitch Ratings. "Amazon’s value offering across its business lines is also resonating as both consumers and companies seek savings opportunities. The company is enjoying a virtuous cycle of growth, which yields positive cash flow and the ability to invest in its core business and competitive differentiators, including faster delivery times and cloud compute product portfolio enhancements."
The company forecast revenue in the current quarter to range from $181.5 billion to $188.5 billion, representing growth of 7% to 11% year over year. Silverman noted that the guidance suggests Amazon is optimistic about its holiday prospects even in a somewhat choppy environment for spending on discretionary goods
Amazon highlighted several key achievements since its last earnings announcement. Several are highlighted below.
- Held its annual Prime Big Deal Days shopping event, with record sales, number of items sold, and Prime member participation, saving Prime members more than $1 billion with deals across its Store.
- Announced its first-ever fuel savings offer for Prime, saving U.S. members 10 cents a gallon on fuel at approximately 7,000 BP, Amoco and AmPm locations.
- Announced plans to expand Amazon Pharmacy Same-Day Delivery of medications to nearly half the U.S. in 2025 by accelerating the roll out of new pharmacies in 20 more U.S. cities by the end of next year.
- Launched new generative AI-powered features.
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