Amazon Q3 2025 Financial Results Conference Call

Summary

Amazon held its Q3 2025 earnings call reporting strong performance across all business segments. The company achieved $180.2 billion in revenue with 12% year-over-year growth, though operating income of $17.4 billion was impacted by $4.3 billion in special charges including an FTC settlement and severance costs. AWS was the standout performer with 20.2% growth reaching $33 billion in revenue - the highest growth rate in 11 quarters - driven by strong AI adoption and infrastructure demand. The segment's backlog reached $200 billion, and Amazon's custom Trainium2 chips became a multibillion-dollar business. CEO Andy Jassy emphasized Amazon's aggressive capacity expansion, adding 3.8 gigawatts of power in the past year with plans to double total capacity by 2027. The company is heavily investing in AI infrastructure, including Project Rainier with nearly 500,000 Trainium2 chips for Anthropic. Amazon's advertising business generated $17.6 billion with 22% growth, benefiting from new partnerships with Netflix, Spotify, and SiriusXM. The retail business showed strong momentum in grocery delivery, expanding perishable same-day delivery to over 1,000 cities. Amazon also announced organizational restructuring to reduce layers and increase employee ownership, reflecting Jassy's commitment to operating like 'the world's largest startup' amid rapid AI-driven transformation.

Key Points

• Amazon reported $180.2 billion in revenue, up 12% year-over-year
• AWS revenue grew 20.2% year-over-year to $33 billion, highest growth in 11 quarters
• Operating income was $17.4 billion, impacted by $4.3 billion in special charges (FTC settlement and severance costs)
• AWS backlog reached $200 billion with strong AI and infrastructure demand
• Trainium2 became a multibillion-dollar business, growing 150% quarter-over-quarter
• Amazon added 3.8 gigawatts of power capacity in past 12 months, planning to double capacity by 2027
• Advertising revenue reached $17.6 billion, growing 22% year-over-year
• Expanded perishable grocery delivery to 1,000+ cities with same-day delivery
• Launched multiple AI initiatives including Rufus (250M active customers), AgentCore, and Kiro coding IDE

Action Items

• Add at least 1 gigawatt of power capacity in Q4 2025
• Expand perishable grocery delivery to 2,300 cities by end of year
• Continue AWS capacity expansion to double by 2027
• Launch Trainium3 preview by end of 2025 with full volumes in early 2026
• Expand rural delivery network with $4 billion investment
• Roll out Zoox robotaxis to more locations beyond Las Vegas

Decisions

• Implementing organizational restructuring to reduce layers and increase ownership
• Continuing aggressive investment in AI capacity and infrastructure
• Partnering with Netflix, Spotify, and SiriusXM for advertising DSP expansion
• Focusing on perishable grocery delivery model over physical store expansion
• Maintaining multi-chip strategy with both custom Trainium and third-party options

Participants