Amazon reports strong first-quarter results

The Seattle-based e-commerce giant reported a 17% increase in net sales in the first quarter of the year compared to the same period last year. The AWS segment delivered a noteworthy performance

“We’re making customers’ lives easier and better every day across all our businesses, and their response is driving significant growth. AWS is growing 28% (our fastest growth in 15 quarters) on a very large base, our chips business topped a 20 billion US dollars revenue run rate (growing triple digits year-over-year), Advertising grew to over 70 billion US dollars in TTM revenue, and unit growth in our Stores reached 15% (the highest since the tail end of covid lockdowns)”, said Andy Jassy, President and CEO of Amazon.

First-Quarter Results

In the first quarter of the 2026 fiscal year, the company’s net sales reached 181.5 billion US dollars, representing a 17% increase compared to the same period in the previous fiscal year. Excluding the favourable impact of year-on-year changes in foreign exchange rates (2.9 billion US dollars), net sales increased by 15%.

The North American segment contributed 104.1 billion US dollars to total net sales, up by 12% year-on-year, while the international segment contributed 39.8 billion US dollars, up by 19% year-on-year (or 11% excluding changes in foreign exchange rates). The AWS segment contributed 37.6 billion US dollars, marking a 28% year-on-year increase.

Amazon reported an operating income of 23.9 billion US dollars in the first quarter of this year, up from 18.4 billion US dollars in the same quarter of 2025.

First-quarter net income also rose to 30.3 billion US dollars in this period, equating to 2.78 US dollars per diluted share, up from 17.1 billion US dollars, equating to 1.59 US dollars per diluted share, in the same quarter of last year.

Over the trailing twelve months, operating cash flow increased by 30% to 148.5 billion US dollars, up from 113.9 billion US dollars a year earlier. However, free cash flow fell from 25.9 billion to 1.2 billion US dollars, mainly due to a substantial increase in capital expenditure of 59.3 billion US dollars, particularly on investments in artificial intelligence infrastructure.

Second-Quarter Outlook

Amazon expects to achieve net sales of between 194.0 and 199.0 billion US dollars in the second quarter of 2025, reflecting an increase of between 16% and 19% compared to the same quarter in 2025. This guidance anticipates a negative impact of around 10 basis points from foreign exchange rates.

Operating income is expected to be between 20.0 billion and 24.0 billion US dollars, up from 19.2 billion US dollars in the second quarter of 2025.

Image Credits: invezz.com

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