Mirror Review
February 06, 2026
Amazon is best known for changing how people shop online, but today it does much more than sell products. It runs one of the world’s largest cloud platforms, a fast-growing advertising business, and a global logistics network.
That scale showed clearly as Amazon Earnings 2025 reached $716.9 billion, highlighting two key trends at once:
- Amazon’s retail business still brings in the most revenue.
- AWS is the fastest-growing segment, driven by rising demand for cloud and AI services.
Together, these trends explain why the Amazon 2025 results matter. They show how the company balances scale and innovation, while building growth engines beyond online shopping.
To understand this better, it helps to look at how Amazon performed across its main businesses during the year.
Amazon Q4 Results Show Strong Finish to 2025
Amazon closed 2025 with a strong holiday quarter.
In Amazon Q4 2025, net sales rose 14% year over year to $213.4 billion, compared with $187.8 billion in the same period last year.
Currency changes helped slightly, but even without that impact, sales still grew at a solid pace. This shows that customer demand remained strong across regions and services.
Q4 2025 revenue by segment:
- North America: $127.1 billion, up 10%
- International: $50.7 billion, up 17%, or 11% excluding currency effects
- AWS: $35.6 billion, up 24% year over year
AWS clearly stood out as the fastest-growing segment, reflecting rising demand for cloud infrastructure and AI workloads.
Amazon Earnings 2025: Full-Year Performance Explained
Looking beyond the quarter, Amazon Earnings 2025 reached $716.9 billion, up 12% from $638.0 billion in 2024.
Full-year revenue by segment:
- North America: $426.3 billion, up 10%
- International: $161.9 billion, up 13%, or 10% excluding currency effects
- AWS: $128.7 billion, up 20%
Retail in North America remained Amazon’s largest revenue driver, but AWS continued to grow faster, strengthening its role as Amazon’s most important growth engine.
AWS Leads Growth as AI Demand Rises
AWS delivered its fastest growth in 13 quarters, driven by rising demand for cloud computing, AI services, and custom chips.
Andy Jassy, President and CEO, highlighted this momentum in the Amazon earnings call, saying:
“AWS growing 24%, Advertising growing 22%, Stores growing briskly across North America and International… This growth is happening because we’re continuing to innovate at a rapid rate and knock down customer problems.”
AWS also made progress in custom silicon. Trainium and Graviton chips crossed a $10 billion annual revenue run rate (estimated yearly revenue based on current sales pace), growing at triple-digit rates.
These chips now power large-scale AI systems, including Project Rainier, one of the world’s largest AI compute clusters.
Advertising, Subscriptions, and Retail Add Balance
While AWS leads, Amazon’s other businesses continue to play a vital role.
- Advertising grew 22% in Amazon Q4 2025, showing that brands still see Amazon as a key platform to reach shoppers.
- Subscription services such as Prime and digital content also added steady revenue.
On the retail side, Amazon delivered faster shipping than ever in 2025. Same-day delivery expanded across cities and rural areas, and nearly 100 million customers used same-day services in the U.S. alone.
These improvements help Amazon protect its core retail position.
Profitability Improves Across the Business
For the full year, operating income (profit from core business after operating costs, before taxes and interest) rose to $80.0 billion, up from $68.6 billion in 2024.
Full-year operating income by segment:
- North America: $29.6 billion
- International: $4.7 billion
- AWS: $45.6 billion
Net income (final profit after all expenses, taxes, and costs are deducted) climbed to $77.7 billion, or $7.17 per share, showing that Amazon is converting growth into earnings more effectively.
At the same time, Amazon increased capital spending heavily. Free cash flow fell to $11.2 billion, largely due to major investments in AI infrastructure and data centers.
What Amazon’s 2026 Guidance Signals
Looking ahead, Amazon Q1 2026expects net sales between $173.5 billion and $178.5 billion, implying 11 to 15% year-over-year growth.
Furthermore, operating income is expected to range between $16.5 billion and $21.5 billion, reflecting higher spending on AI, satellites, and faster delivery services.
Jassy also noted that Amazon plans to invest around $200 billion in capital expenditures in 2026, focusing on AI, chips, robotics, and low-earth-orbit satellites. Moreover, the company expects these investments to drive strong long-term returns.
Yet, Amazon shares fell about 10% after the Amazon earnings release, as investors reacted to a heavier-than-expected $200 billion capital spending forecast and a slight earnings miss despite strong revenue growth.
Conclusion
Amazon Earnings 2025 reaching $716.9 billion highlights a company growing at scale while reshaping its future.
Retail continues to anchor revenue, but AWS has clearly emerged as the fastest-growing and most profitable engine, powered by AI demand and cloud innovation.
As Amazon balances short-term profitability with heavy long-term investment, its 2025 results show why it remains one of the most influential companies shaping global commerce and technology.
