Amazon reported third quarter outcomes on October 30, 2025, exhibiting promoting income reached $17.7 billion with 22% year-over-year progress. The corporate’s whole web gross sales climbed to $180.2 billion, representing 12% progress excluding international change impacts. AWS income accelerated to $33 billion, marking the cloud division’s quickest progress charge in 11 quarters at 20.2% year-over-year.

Working revenue totaled $17.4 billion for the quarter. Two particular costs decreased this determine: a $2.5 billion settlement with the Federal Commerce Fee and $1.8 billion in estimated severance prices from deliberate function eliminations. With out these costs, working revenue would have reached $21.7 billion. Web revenue climbed to $21.2 billion, or $1.95 per diluted share, in contrast with $15.3 billion in the identical interval final yr.

The promoting efficiency marked the third consecutive quarter of accelerating progress. Amazon’s Q2 2025 advertising revenue reached $15.7 billion, representing 22% year-over-year enlargement. The constant acceleration demonstrates strengthening advertiser demand throughout the corporate’s full-funnel promoting portfolio spanning Amazon’s retail market, Prime Video, Twitch, Hearth TV, and dwell sports activities programming.

CEO Andy Jassy emphasised AWS momentum throughout the earnings name. “AWS is rising at a tempo we’ve not seen since 2022, reaccelerating to twenty.2% year-over-year, our largest progress charge in 11 quarters,” Jassy acknowledged. The AWS annualized income run charge reached $132 billion. AWS backlog grew to $200 billion by quarter finish, excluding a number of unannounced October offers that collectively exceeded whole Q3 deal quantity.

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Anthropic partnership drives AWS AI infrastructure

Amazon introduced Mission Rainier on-line throughout the quarter—a large AI compute cluster spanning a number of U.S. information facilities containing practically 500,000 Trainium2 chips. Anthropic makes use of this infrastructure to construct and deploy Claude AI fashions. Amazon completed a $4 billion investment commitment in Anthropic by March 2024, establishing AWS as Anthropic’s major cloud supplier.

Trainium2 reached full subscription standing and have become a multibillion-dollar enterprise rising 150% quarter-over-quarter. The customized AI chip delivers 30% to 40% higher price-performance than competing choices. “Trainium2 continues to see sturdy adoption, is totally subscribed is now a multibillion-dollar enterprise that grew 150% quarter-over-quarter,” Jassy mentioned throughout the name. Anthropic plans to scale Claude coaching to greater than 1 million Trainium2 chips by year-end.

Third quarter web revenue included a $9.5 billion pretax achieve from Amazon’s Anthropic funding, labeled beneath nonoperating revenue. The partnership extends past monetary funding to technical integration, with Anthropic providing Claude fashions by Amazon Bedrock whereas using AWS as its major infrastructure supplier.

Jassy detailed Mission Rainier’s technical complexity: “it isn’t easy to have the ability to construct a cluster that has 500,000 plus chips going to 1 million. That is an infrastructure feat that is exhausting to do at scale.” AWS added greater than 3.8 gigawatts of energy capability up to now 12 months, greater than some other cloud supplier. The corporate plans to double whole capability by 2027, with no less than one further gigawatt coming on-line in This autumn 2025 alone.

Promoting grows throughout a number of channels

The $17.7 billion promoting determine marks substantial progress from the $14.3 billion reported in Q3 2024. Amazon’s promoting success spans a number of codecs and platforms. Sponsored merchandise stay the most important contributor, whereas streaming promoting by Prime Video presents vital progress alternatives.

Thursday Evening Soccer on Prime Video averaged 15.3 million viewers throughout the 2025 season, the very best efficiency for TNF on any community in a decade in keeping with Nielsen information. This represents a 16% enhance over the earlier season’s seven-game common. NBA on Prime launched throughout the quarter, with the season-opening doubleheader averaging 1.25 million U.S. viewers—a double-digit enhance over final season on cable.

Amazon introduced partnerships increasing its demand-side platform attain. The corporate built-in with Netflix, offering Amazon DSP advertisers direct entry to Netflix’s premium advert stock. Partnerships with Spotify and SiriusXM prolong DSP attain to 400 million month-to-month Spotify ad-supported listeners and 160 million month-to-month SiriusXM digital listeners throughout providers together with Pandora and SoundCloud.

The Roku partnership announced in June 2025 created the most important authenticated Related TV footprint in america, offering entry to an estimated 80 million CTV households by Amazon DSP. This represents greater than 80% of all CTV households in keeping with ComScore information.

AI-powered commerce options drive engagement

Rufus, Amazon’s AI-powered procuring assistant, reached 250 million energetic clients in 2025. Month-to-month customers elevated 140% year-over-year, whereas interactions grew 210% year-over-year. Clients utilizing Rufus throughout procuring journeys confirmed 60% greater buy completion charges. The AI assistant tracks towards delivering over $10 billion in incremental annualized gross sales.

Amazon launched a number of AI-enhanced procuring options. A generative AI-powered audio functionality combines product summaries and critiques. The characteristic expanded from a whole bunch of merchandise at launch to tens of millions, with clients streaming virtually 3 million minutes. Amazon Lens, an AI-powered visible search instrument utilizing cellphone cameras, screenshots, or bar codes, added Lens Dwell performance exhibiting real-time product matches in a swipeable carousel. Tens of tens of millions of shoppers use Amazon Lens month-to-month.

The corporate launched Assist Me Determine, an AI characteristic aiding clients in product choice utilizing looking exercise, searches, procuring historical past, and preferences. Over 1.3 million impartial sellers used Amazon’s generative AI instruments to create product listings. Third-party vendor unit combine reached 62% in Q3, up 200 foundation factors from the prior yr.

Amazon blocked AI crawlers from multiple companies in August 2025, together with Anthropic’s Claude bot, OpenAI’s GPTBot, and others from Meta, Google, Huawei, and Mistral. The restrictions goal to guard Amazon’s $56 billion promoting enterprise from third-party AI instruments that might bypass {the marketplace} and undermine each web site site visitors and promoting income.

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AWS technical capabilities develop

Amazon introduced new Amazon EC2 P6e-GB200 UltraServers utilizing NVIDIA Grace Blackwell Superchips, designed for coaching and deploying massive AI fashions. The corporate added basis fashions in Amazon Bedrock, together with open weight fashions from OpenAI, DeepSeek-V3.1, and Qwen3, plus Anthropic’s Claude Sonnet 4.5, Claude Opus 4.1, and Claude Haiku 4.5.

AWS launched AgentCore throughout the quarter—infrastructure constructing blocks enabling builders to deploy safe, scalable AI brokers. The SDK has been downloaded over 1 million instances. Ericsson used AgentCore to ship AI brokers throughout their workforce. Sony constructed an agentic AI platform with enterprise-level safety, observability and scalability. Cohere Well being deploys brokers by AgentCore to cut back medical assessment instances by 30% to 40%.

Amazon Join reached $1 billion annualized income run charge. The AI contact middle resolution dealt with 12 billion buyer interplay minutes within the final yr. Main enterprises together with Capital One, Toyota, American Airways, and Ryanair use the service.

AWS announced RTB Fabric on October 23, 2025—a managed service for real-time bidding promoting workloads. The service delivers single-digit millisecond latency and as much as 80% decrease networking prices in comparison with customary infrastructure. RTB Cloth gives devoted community environments for processing tens of millions of bid requests per second with strict latency necessities.

Retail operations advance supply capabilities

Amazon expanded same-day supply of perishable groceries to greater than 1,000 U.S. cities and cities. The corporate plans to succeed in 2,300 areas by year-end. Clients in these markets can order recent groceries alongside tens of millions of Amazon merchandise with free same-day supply. When clients begin procuring groceries on Amazon, they go to the location extra steadily and return twice as usually as nonperishable buyers.

The corporate elevated the variety of rural communities with entry to same-day and next-day supply by 60%, reaching roughly half the whole communities deliberate by year-end. Amazon dedicated over $4 billion to develop its rural supply community throughout america. These investments goal small cities the place different carriers have decreased service.

Worldwide paid items elevated 11% year-over-year. North America phase gross sales grew 11% to $106.3 billion. Worldwide phase gross sales elevated 10% excluding international change results to $40.9 billion. The corporate deployed over 1 million robots in achievement operations. U.S. inbound lead time decreased by practically 4 days in comparison with final yr, bettering working capital administration.

Prime Day in July marked the most important occasion ever. Clients saved billions of {dollars} throughout greater than 35 classes. Amazon continues monitoring towards delivering on the quickest speeds ever for Prime members globally in 2025. The corporate added an “add to supply” button permitting clients so as to add gadgets to beforehand scheduled orders. The characteristic has been used greater than 80 million instances since launch.

Capital expenditure will increase assist AI progress

Money capital expenditure reached $34.2 billion within the quarter. Yr-to-date money CapEx totaled $89.9 billion. CFO Brian Olsavsky acknowledged, “we anticipate our full yr money CapEx to be roughly $125 billion in 2025, and we anticipate that quantity will enhance in 2026.” The investments primarily assist AWS infrastructure for AI and core providers, customized silicon like Trainium, and expertise infrastructure for retail segments.

Trailing twelve-month free money stream reached $14.8 billion, down 69% year-over-year. The decline resulted from a $50.9 billion year-over-year enhance in property and gear purchases web of proceeds. Working money stream elevated 16% to $130.7 billion for the trailing twelve months.

North America phase working revenue reached $4.8 billion, representing a 4.5% margin. Excluding the $2.5 billion FTC settlement cost, North America working revenue would have reached $7.3 billion with a 6.9% margin. Worldwide phase working revenue totaled $1.2 billion with a 2.9% margin. AWS phase working revenue reached $11.4 billion, up 9% year-over-year.

Workforce changes and fourth quarter steering

The $1.8 billion severance cost pertains to deliberate function eliminations throughout all three enterprise segments. Jassy characterised the workforce discount as culturally pushed reasonably than financially motivated. “What I might let you know is the announcement that we made just a few days in the past was probably not financially pushed and it isn’t even actually AI-driven, not proper now, no less than. It actually — its tradition,” Jassy acknowledged throughout the earnings name.

The CEO defined that speedy progress led to elevated organizational layers weakening possession amongst frontline employees. “When that occurs, typically with out realizing which you could weaken the possession of the folks that you’ve got who’re doing the precise work and who personal a lot of the 2-way door selections, those that ought to be made rapidly and proper on the entrance line, and it could result in slowing you down.”

Amazon offered fourth quarter 2025 steering projecting web gross sales between $206.0 billion and $213.0 billion, representing 10% to 13% progress in contrast with This autumn 2024. The steering anticipates a good influence of roughly 190 foundation factors from international change charges. Working revenue is anticipated between $21.0 billion and $26.0 billion, in contrast with $21.2 billion in This autumn 2024.

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Abstract

Who: Amazon reported third quarter 2025 monetary outcomes. CEO Andy Jassy and CFO Brian Olsavsky offered earnings on October 30, 2025. Anthropic makes use of Amazon’s Mission Rainier infrastructure to coach Claude AI fashions.

What: Amazon generated $17.7 billion in promoting income, rising 22% year-over-year for the third consecutive quarter of acceleration. AWS income reached $33 billion with 20.2% progress—the quickest charge in 11 quarters. Whole web gross sales hit $180.2 billion. Working revenue reached $17.4 billion, together with $4.3 billion in particular costs from an FTC settlement and workforce reductions. Mission Rainier introduced on-line practically 500,000 Trainium2 chips for Anthropic’s Claude AI coaching. Third quarter outcomes included a $9.5 billion pretax achieve from the Anthropic funding.

When: Amazon introduced third quarter 2025 outcomes on October 30, 2025, masking the interval ended September 30, 2025. The promoting income marked the third consecutive quarter of accelerating progress. AWS achieved its highest progress charge in 11 quarters. Amazon introduced Mission Rainier on-line throughout Q3, with Anthropic scaling to greater than 1 million Trainium2 chips by year-end.

The place: Outcomes span Amazon’s world operations throughout North America, Worldwide, and AWS segments. North America phase gross sales reached $106.3 billion. Worldwide phase gross sales totaled $40.9 billion. AWS serves clients globally with the $33 billion quarterly income. Mission Rainier spans a number of U.S. information facilities. Amazon expanded same-day grocery supply to over 1,000 U.S. cities with plans to succeed in 2,300 by year-end.

Why: The Q3 2025 outcomes matter for the advertising neighborhood as a result of they reveal Amazon’s strengthening place in digital promoting with three consecutive quarters of accelerating progress. The 22% promoting income enhance considerably outpaces the corporate’s general 12% gross sales progress, indicating promoting’s increasing significance to Amazon’s enterprise mannequin. AWS infrastructure investments, significantly Mission Rainier supporting Anthropic’s Claude fashions, place Amazon as a vital enabler of AI-powered advertising instruments. Trainium2’s multibillion-dollar standing and 150% quarter-over-quarter progress present speedy adoption of Amazon’s customized AI chips, which ship 30% to 40% higher price-performance for AI workloads. The promoting expertise developments together with reserve share of voice for branded search, partnerships with Netflix, Spotify, and SiriusXM by Amazon DSP, and AWS RTB Fabric for real-time bidding present entrepreneurs with enhanced concentrating on capabilities and expanded stock entry. Amazon’s AI-powered commerce options like Rufus reaching 250 million customers with 60% greater buy completion charges reveal how generative AI drives measurable enterprise outcomes. The $125 billion full-year capital expenditure steering for 2025, rising additional in 2026, alerts Amazon’s dedication to constructing infrastructure that can energy next-generation promoting and advertising applied sciences.


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