Amazon Q4 2025 Earnings Surge on AWS Growth and AI Investment
SEATTLE — Feb. 5, 2026 — Amazon.com, Inc. on Thursday reported fourth-quarter 2025 financial results showing double-digit revenue growth and accelerating performance in its cloud computing business, while outlining plans for a significant increase in capital expenditures in 2026.
Net sales rose 14% year over year to $213.4 billion for the quarter ended Dec. 31, compared with $187.8 billion in the prior-year period. Excluding the impact of foreign exchange, net sales increased 12%.
Fourth-Quarter Performance
Operating income increased to $25.0 billion in the fourth quarter, up from $21.2 billion a year earlier. Results included approximately $2.4 billion in special charges related to the resolution of tax disputes, severance costs, and asset impairments primarily associated with physical stores.
North America segment sales rose 10% to $127.1 billion, while International segment sales increased 17% to $50.7 billion, or 11% excluding foreign exchange effects. Amazon Web Services (AWS) revenue grew 24% year over year to $35.6 billion, marking its fastest growth rate in more than three years.
Net income for the quarter totaled $21.2 billion, or $1.95 per diluted share, compared with $20.0 billion, or $1.86 per diluted share, in the fourth quarter of 2024.
Full-Year 2025 Results
For the full year, Amazon reported net sales of $716.9 billion, up 12% from $638.0 billion in 2024. AWS revenue increased 20% year over year to $128.7 billion, while North America and International segment sales rose 10% and 13%, respectively.
Operating income for 2025 climbed to $80.0 billion, compared with $68.6 billion in the prior year. Net income increased to $77.7 billion, or $7.17 per diluted share, up from $59.2 billion, or $5.53 per diluted share, in 2024.
Operating cash flow for the trailing twelve months rose 20% to $139.5 billion. Free cash flow declined to $11.2 billion, which the company attributed primarily to higher year-over-year capital expenditures focused on artificial intelligence infrastructure.
Capital Spending and Strategic Investments
Amazon President and Chief Executive Officer Andy Jassy cited continued demand across AWS, advertising, and emerging technology initiatives.
“With such strong demand for our existing offerings and opportunities like AI, chips, robotics, and low Earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026,” Jassy said. He added that the company anticipates strong long-term returns on invested capital.
The company highlighted momentum in AWS custom silicon offerings, including its Trainium and Graviton chips, as well as broader adoption of generative AI services through Amazon Bedrock and related agent-based tools.
First-Quarter 2026 Outlook
For the first quarter of 2026, Amazon expects net sales between $173.5 billion and $178.5 billion, representing year-over-year growth of 11% to 15%. The guidance includes an estimated favorable foreign exchange impact of approximately 180 basis points.
Operating income is expected to range from $16.5 billion to $21.5 billion, compared with $18.4 billion in the first quarter of 2025. The outlook reflects higher costs associated with scaling Amazon Leo satellite services and continued investment in faster delivery and pricing initiatives in international markets.
Conference Call and Filings
Amazon said it will host a conference call to discuss the results Thursday at 2:00 p.m. PT / 5:00 p.m. ET, with a webcast available on its investor relations website.
The company cautioned that forward-looking statements are subject to risks and uncertainties, including global economic conditions, foreign exchange volatility, regulatory developments, and the pace of investment in new technologies, as detailed in its filings with the U.S. Securities and Exchange Commission.
