The company's total net sales increased by 17 percent to $181.5 billion, compared to expected $177.3 billion. Earnings per share landed at $2.78, a noticeable increase from analysts' estimates of $1.64. The net result of $30.3 billion also includes a pre-tax gain of $16.8 billion related to Amazon's investments in the AI company Anthropic.
Within the e-commerce and online store segment, revenues grew by 12 percent to just over $64 billion. Amazon Web Services (AWS) also reported a sales increase of 28 percent to $37.6 billion. This marks the fastest growth rate for the cloud segment in over three years. At the same time, advertising revenue increased by 24 percent to $17.2 billion, a figure that also exceeded market forecasts.
Amazon CEO, Andy Jassy, comments on the development:
We are making customers’ lives easier and better every day across all of our businesses, and their response is driving significant growth, says Andy Jassy, CEO of Amazon.
AWS is growing at 28 percent, our chip business exceeded a revenue run rate of $20 billion, and unit growth in our stores reached 15 percent. We are in the middle of some of the biggest changes in our lifetime, we are well positioned to lead, and I am very optimistic about what’s ahead for our customers and Amazon.
The report also highlights the company's expanded capital expenditures. Free cash flow decreased to $1.2 billion for the last twelve months, compared to $25.9 billion the previous year. The decrease is primarily attributed to increased investments in property and equipment, specifically related to infrastructure for artificial intelligence and the satellite-based broadband network Project Leo. As part of the satellite initiative, the company recently announced plans to acquire Globalstar.
Looking ahead to the second quarter of 2026, Amazon is providing a strong forecast. Net sales are expected to land between $194 and $199 billion, which is higher than Wall Street's previous expectations. Finally, the company confirms that this year's major shopping event, Prime Day, has been moved forward and will be held in June in most of the company's operating countries.