Santiago Iniesta Sánchez
Spain
1m
🚀 Amazon’s Q3 Results: AI Momentum and AWS Acceleration Power a Strong Quarter 💪 Amazon ($AMZN (Amazon.com Inc)) delivered a solid Q3 performance, once again proving that its growth story is far from over. The tech and retail giant reported strong top-line results, with net sales reaching $180.17B, beating estimates of $177.82B 🟢 and rising 13% year over year. Earnings per share also impressed — $1.95 vs. $1.58 expected 🟢 — highlighting better profitability even amid rising costs. ☁️ AWS Leads the Way — Back to 20% Growth The biggest highlight came from Amazon Web Services (AWS), which generated $33.01B in revenue, up 20% YoY, the fastest pace since 2022 🧠⚙️. CEO Andy Jassy emphasized that AI adoption continues to reshape every part of the business, noting that AWS demand for AI and cloud infrastructure is accelerating as the company expands capacity. 💰 Q4 Outlook — Growth to Stay in Double Digits Looking ahead, Amazon expects Q4 net sales between $206B and $213B, topping market expectations (consensus: $208.45B) 🟢. That implies 10%–13% YoY growth, supported by a ~190 bps currency tailwind 🌎. Operating income is projected between $21B and $26B, roughly in line with last year’s $21.2B. 🛒 Segment Highlights Amazon’s diversified engine continues to fire on all cylinders: 🔹 Online Stores: $67.41B 🟢 (+9.8% YoY) 🔹 Physical Stores: $5.58B 🟢 (+6.7% YoY) 🔹 3P Seller Services: $42.49B 🟢 (+12% YoY) 🔹 Subscription Services: $12.57B 🟢 (+11% YoY) 🔹 North America: $106.27B 🟢 (+11% YoY) 🔹 International: $40.90B 🟢 (+14% YoY) The third-party (3P) seller mix reached 62%, a record high, showing the growing strength of Amazon’s marketplace model. ⚙️ Profitability Under Pressure Despite robust sales, margins faced headwinds. Operating income came in at $17.42B, below the $19.72B estimate 😕, while operating margin slipped to 9.7% (vs. 11.1% expected). The company cited higher fulfillment costs (+12% YoY to $27.68B 🔴) and special charges — roughly $2.5B for an FTC settlement and $1.8B in severance. Excluding these one-time items, operating income would have been around $21.7B. Still, net income jumped to $21.2B, up sharply from $15.3B last year, and cash generation remained strong: 💵 Operating cash flow: $130.7B (+16% YoY) 💵 Free cash flow: $14.8B (slightly lower due to higher CapEx). 💬 CEO’s Take “We continue to see strong momentum across Amazon as AI drives meaningful improvements in every corner of our business,” said CEO Andy Jassy. “AWS is re-accelerating to ~20% YoY with strong demand in AI and core infrastructure as we add capacity.” 📊 The Bottom Line Amazon’s Q3 was another AI-fueled victory lap — top-line growth, accelerating AWS momentum, and solid Q4 guidance all point to continued strength. While higher expenses trimmed margins, the broader message is clear: Amazon is executing — and AI is powering the next wave of growth. ⚡📦
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