Amazon's Q3 profit jumps 38% to $21B on consumer spending
What's the story
Amazon has reported a massive 38% jump in its profit to $21.2 billion for the third quarter of 2025, beating analyst expectations. The company's sales during this period stood at $180.2 billion, a 13% increase from last year. The growth was mainly driven by strong online consumer spending and a recovery in cloud computing services.
Cloud comeback
AWS reports a 20% increase in sales
Amazon Web Services (AWS), the company's cloud computing division, reported a 20% increase in sales to $33 billion. This growth comes after facing competitive pressures from Microsoft and Google. The improvement in AWS's performance has given investors hope for a potential turnaround in the future.
Retail resilience
Amazon's retail business remains strong despite tariff challenges
Despite the challenges posed by President Donald Trump's tariffs, Amazon's retail business has remained strong. The company and its marketplace sellers had stocked up on inventory in the US before the new duties were imposed. This strategy has helped shield them from the impact of these tariffs.
Ad growth
Advertising business and automation efforts
Amazon's advertising business, which primarily promotes products on its site, also witnessed strong growth with $17.7 billion in sales. The company has been focusing on automation to reduce its workforce. It recently announced plans to lay off 14,000 corporate employees and use robotics to avoid hiring more than half a million workers by 2033.