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Amazon (AMZN) Q1 earnings report 2025

“Amazon (AMZN) Q1 earnings report 2025”


Andy Jassy, CEO of Amazon, speaks throughout an unveiling occasion in New York on Feb. 26, 2025.

Michael Nagle | Bloomberg | Getty Photographs

Amazon reported better-than-expected outcomes for the primary quarter, but it surely gave delicate steering for the present interval as the corporate navigates uncertainty round President Donald Trump’s sweeping tariffs.

The inventory fell greater than 2% in prolonged buying and selling.

Here is how the corporate did, in contrast with estimates from analysts polled by LSEG:

  • Earnings per share: $1.59 vs. $1.36 anticipated
  • Income: $155.67 billion vs. $155.04 billion anticipated

Wall Avenue can be taking a look at different key income numbers:

  • Amazon Internet Providers: $29.3 billion vs. $29.42 billion anticipated, in accordance with StreetAccount
  • Promoting: $13.92 billion vs. $13.74 billion anticipated, in accordance with StreetAccount

Amazon mentioned it expects second-quarter working earnings to be between $13 billion and $17.5 billion, beneath the $17.64 billion consensus forecast, in accordance with StreetAccount.

The corporate expects gross sales this quarter to be between $159 billion and $164 billion, representing development of seven% to 11%. Analysts have been anticipating $160.9 billion, in accordance with LSEG.

Amazon famous “tariffs and trade policies” and “recessionary fears” are amongst a spread of things that would make its steering topic to alter. The corporate didn’t discuss with tariffs in its forward-looking steering final quarter.

The subject of tariffs is a serious focus amongst traders this quarter. Amazon faces important publicity to Trump’s tariffs, primarily by its retail unit. Amazon sources some merchandise from China, which was hit with an aggressive 145% levy.

Many sellers on Amazon’s third-party market, which accounts for greater than half the corporate’s whole gross sales, depend on the world’s second-largest economic system to make or assemble their merchandise. Some sellers have already raised costs and reduce on promoting spend as they confront larger import prices.

The corporate landed within the crosshairs of the White Home earlier this week over a report that Amazon deliberate to indicate buyers the price of the tariffs. Amazon mentioned no such change was coming, and that it solely thought of including a line merchandise to merchandise offered by way of its low cost storefront, known as Haul.

On a name with traders, Jassy mentioned the “diversity” of Amazon’s third-party vendor base implies that some retailers aren’t “going to pass all or any of those tariffs on to customers.”

He went on to say that Amazon may emerge from the unsure tariff atmosphere stronger than earlier than, given its capability supply low costs. Jassy pointed to the Covid pandemic as a interval when buyers flocked to the location and the corporate grew its market share.

Jassy acknowledged that Trump’s on-again-off-again tariffs have made it arduous to foretell what influence they’re going to have on Amazon’s companies.

“It’s hard to tell what’s going to happen with tariffs right now,” he advised traders. “It’s hard to tell where they’re going to settle and when they’re going to settle.”

Internet earnings got here in at $17.13 billion, or $1.59 per share, in contrast with $10.43 billion, or 98 cents per share, a yr in the past. Jassy has labored to bolster Amazon’s earnings in recent times by reducing bills and making its logistics community function extra effectively.

Gross sales in Amazon’s cloud division got here in slightly below consensus estimates, marking the third consecutive quarter of income misses. AWS income grew 17% in the course of the quarter, which was a slower charge than analysts anticipated. Final quarter, gross sales within the unit expanded 18.9%.

Promoting was a vibrant spot within the report. Gross sales within the unit rose 19% yr over yr to $13.92 billion in the course of the quarter, outpacing development in Amazon’s core retail enterprise.

Different on-line advert corporations together with Google and Snap have warned of the potential for companies to tighten their advertising budgets because of the tariffs.

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Amazon yr up to now inventory efficiency

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