Archive · 31 Oct 2025
Amazon Stock Soars on Strong Q3 Results Driven by AWS and AI
Amazon had a really good three months!
Their online store and especially their cloud computing service, called AWS, made a lot of money.
Even though they had to pay a big settlement and let some people go, their overall sales and profits were better than people expected.
They're also saying that new AI technology is helping all parts of their business work better.
People watched a lot of their shows like 'The Summer I Turned Pretty' and their football streams were also very popular.
Amazon is also promising to deliver packages faster to more places.
Amazon's Q3 revenue increased by 13% to $180 billion, surpassing Wall Street expectations.
The Amazon Web Services (AWS) division saw a significant 20.2% year-over-year revenue growth.
Net income per share was $1.95, boosted by investment gains, while operating income was $17.4 billion.
The company incurred $1.8 billion in severance costs related to job cuts and a $2.5 billion FTC settlement.
CEO Andy Jassy highlighted strong momentum from AI driving improvements across the business and re-accelerated growth at AWS.
- Who
- Amazon
- What
- Reported strong third-quarter financial results, exceeding Wall Street forecasts, with significant growth in Amazon Web Services (AWS) and advancements driven by Artificial Intelligence (AI).
- When
- For the September quarter (Q3)
- Where
- Global
- Why
- Driven by strong demand in AI and core infrastructure, re-accelerated growth at AWS, and AI-driven business improvements across all segments. Entertainment divisions also saw significant viewership and engagement.
Amazon's Progress
Challenges & Criticisms
AWS Performance
Amazon's Progress
AWS revenue grew by 20.2% year-over-year, showing re-accelerated growth and strong demand for AI and core infrastructure.
Challenges & Criticisms
AWS recently experienced a major international outage that affected numerous major websites and apps, including Amazon's own services.
Job Market Impact
Amazon's Progress
The company is investing in AI and expanding delivery services to improve efficiency and customer experience.
Challenges & Criticisms
Amazon incurred $1.8 billion in severance costs due to planned layoffs of 14,000 employees across various divisions.
- Total Revenue
- $180 billion (up 13%)
- AWS Revenue Growth
- 20.2% year-over-year
- Earnings Per Share
- $1.95
- Operating Income
- $17.4 billion
- Severance Costs
- $1.8 billion
- FTC Settlement
- $2.5 billion
- Prime Video TNF Viewership
- 15.3 million average viewers
