US e-commerce giant Amazon released its Q3 2025 financial report after the market closed on November 12. Multiple core indicators exceeded market expectations, driving its after-hours stock price up by more than 3%. Data shows that the company’s Q3 revenue reached $152 billion, a year-on-year increase of 11%; net profit was $12.8 billion, a year-on-year surge of 23%; adjusted earnings per share were $3.85, significantly higher than the analysts’ expected $3.52. Among them, Amazon Web Services (AWS) continued to maintain high-speed growth, becoming the core engine driving overall performance.
AWS performed particularly well in this quarter, achieving revenue of $34.5 billion, a year-on-year increase of 18%, with the growth rate up 2 percentage points from the previous quarter and a stable gross profit margin of 30.2%. The financial report shows that AWS’s layout in the field of artificial intelligence infrastructure services has achieved remarkable results, and the revenue from generative AI-related cloud services increased by 40% month-on-month. Amazon CEO Andy Jassy stated in the earnings call that the company has launched the next-generation AI training chip Trainium X and inference chip Inferentia X for enterprise customers. Currently, 38 out of the world’s top 50 enterprises have adopted AWS’s AI infrastructure solutions.
The core e-commerce business also showed a steady recovery trend. The North American e-commerce segment achieved revenue of $89 billion, a year-on-year increase of 9%, and the international e-commerce business revenue increased by 7% to $28.5 billion. Notably, Amazon’s logistics cost optimization measures have achieved significant results. By adjusting the distribution network layout and promoting drone delivery, the proportion of fulfillment costs in revenue dropped from 16.8% in the same period last year to 15.3% this quarter. At the same time, the Prime membership service continued to expand, with 12 million new members added. Membership subscription revenue increased by 14% year-on-year to $11.8 billion, and the number of subscribers to the newly launched “Prime Video Premium Subscription Package” exceeded 5 million.
The advertising business has become another major growth highlight. Q3 advertising revenue reached $17.2 billion, a year-on-year increase of 21%, far exceeding the industry average growth rate. This performance is mainly due to Amazon’s in-depth integration of e-commerce data and advertising algorithms. The click-through rate of the launched “scenario-based recommendation ads” is 35% higher than that of traditional ads, attracting more FMCG and technology companies to increase investment. Financial report data shows that the number of small and medium-sized enterprise advertising customers increased by 28% year-on-year, contributing more than 60% of the advertising revenue.
Regarding Q4 performance, Amazon provided an optimistic outlook, expecting revenue to be between $175 billion and $185 billion, a year-on-year increase of 10%-14%, higher than the market expectation of $173 billion. The company also announced that it will add 150,000 temporary employees before the holiday shopping season and invest $2 billion in logistics network upgrades to cope with the possible order peak.
Analysts are generally optimistic about Amazon’s growth prospects. Goldman Sachs raised its target stock price from $210 to $235, believing that AWS’s competitive advantage in the AI infrastructure field will continue to expand, and the cost optimization of the e-commerce business and the high growth of the advertising business will form a synergy effect. Morgan Stanley pointed out that Amazon’s cash flow situation continues to improve. Q3 operating cash flow reached $21.5 billion, a year-on-year increase of 19%, providing sufficient support for subsequent technological research and development and business expansion. However, some institutions have warned that attention should be paid to potential risks such as global supply chain fluctuations and changes in US antitrust regulatory policies.
