Amazon Q1 Revenue Rises 9%, Outlook Uncertain

Amazon reported strong financial results for the first quarter of 2025, with net sales reaching $155.7 billion, marking a 9–10% year-over-year increase depending on adjustments for foreign exchange rates. Operating income climbed to $18.4 billion and net income surged to $17.1 billion, driven by growth in both North America and international segments. Amazon Web Services (AWS) posted significant gains, with sales up 17% to $29.3 billion and operating profit of $11.5 billion, as demand for AI infrastructure grew. The company also highlighted new investments, including a $4 billion rural delivery initiative and the rollout of AI-driven shopping features and generative AI models. Despite these gains, Amazon's share price dipped due to a second-quarter outlook that fell short of analyst expectations and ongoing investor concerns about the potential impact of new U.S. trade tariffs on Chinese imports. CEO Andy Jassy noted that while tariff uncertainty persists, there has been no significant drop in consumer demand or notable increase in average retail prices so far.