Amazon Q3 earnings, revenue top estimates
Amazon reported better-than-expected earnings and revenue for its third quarter, with a strong performance from its cloud-computing division.
The tech giant's results were fueled by strong retail sales and ongoing growth in its Amazon Web Services cloud division. AWS revenue rose 20.2% during the quarter to $33 billion.
In the earnings release, Amazon president and CEO Andy Jassy said AWS is “growing at a pace we haven’t seen since 2022.”
“We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity — adding more than 3.8 gigawatts in the past 12 months,” he said.
Third Quarter
Amazon's net income increased to $21.2 billion, or $1.95 per share, in the quarter ended Sept. 30, compared with $15.3 billion, or $1.43 per share, in the year-ago period. Analysts had expected earnings per share of $1.58.
Net sales increased 13% to $180.2 billion in the third quarter, topping estimates of $177.8 billion. North America segment sales increased 11% year over year to $106.3 billion. International segment sales increased 14% year over year to $40.9 billion.
Online store sales rose 10% to $67.4 billion. Physical store sales, which includes Whole Foods Market and other Amazon grocery stores, rose 7% to $5.6 billion, up 7%.
In other results, revenue in Amazon’s advertising business rose 24% to $17.7 billion. Subscription services revenue, which includes Prime memberships, increased 11% $12.6 billion.
“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” stated Jassy. "In Stores, we continue to realize the benefits of innovating in our fulfillment network, and we’re on track to deliver to Prime members at the fastest speeds ever again this year, expand same-day delivery of perishable groceries to over 2,300 communities by end of year, and double the number of rural communities with access to Amazon’s Same-Day and Next-Day Delivery.”
[READ MORE: Amazon launches one of its most ‘significant’ grocery expansions]
Most recently, Amazon said it would invest an additional $1.9 billion in its Delivery Service Partner program, which provides support to its employees who leave their jobs to build their own contract delivery businesses.
