Amazon has started 2025 with positive news, reaching revenues of $171,233 million in the first quarter, which represents a 9% increase compared to the same period in 2024. Excluding the negative effect of exchange rates, growth would have been 10% year-on-year.
The company also increased its net profit by 64%, to $17,127 million, consolidating its recovery and expansion in key areas such as artificial intelligence, logistics, and cloud services. The combination of growth in high-margin segments (AWS and advertising) and improved operational efficiency explains this significant growth in its results.
Although it may seem paradoxical, the largest source of revenue for the eCommerce giant continues to be services, not the sale of products. The sale of services, including its cloud business, AWS, reaches $91.697 million, which constitutes 58.9% of Amazon’s total revenue.
Andy Jassy, CEO of Amazon, highlighted the improvement in customer experience and the pace of innovation: “From Alexa+, to our new Trainium2 chips, passing by Kuiper satellites, we are focused on making life easier for our customers.”
The segment of Amazon Web Services (AWS) posted revenues of $ 29.267 million, a growth of 17% year-on-year, maintaining an operating margin of 39.5%, the highest among all segments. AWS already contributes 19% of Amazon’s total revenue and 63% of operating profit, confirming its role as the group’s profit engine.
According to the company, this AWS growth has been driven by:
Amazon also reported solid growth in its advertising services area, reaching $13,921 million (+18% year-on-year). This figure places advertising as its third largest revenue source after retail and AWS, and as the fastest-growing one.
As for its eCommerce sales, the online business grew by 5% with revenues of $ 57,407 million, while physical stores increased by 6% ($5,533 million). The marketplace’s seller services (commissions + fulfillment) grew by 6%, reaching $36,512 million. Amazon also highlighted the launch of new brands like Saks, Michael Kors, and The Ordinary, as well as new AI functions to improve product search and shopping outside the marketplace.
Amazon expects revenues between $159.000 and $164,000 million in Q2 2025, with anticipated growth between +7% and +11% year-on-year. It also anticipates operating profit of up to $17,500 million, although it warns of a complex macroeconomic environment, especially regarding currencies and infrastructure costs.
Image: Flux Schnell
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