Amazon Q3 FY25 revenue surges 13% to $180 billion as AI and AWS drive growth

Amazon.com, Inc. reported a strong set of numbers for the quarter ended September 30, 2025, as accelerating growth in its cloud and artificial intelligence businesses powered double-digit gains in sales and profit. Net sales rose 13 percent year-on-year to $180.2 billion, compared with $158.9 billion in the same quarter last year. Excluding a $1.5 billion favourable impact from foreign-exchange movements, revenue was up 12 percent on a constant-currency basis.

The company’s North America operations delivered sales of $106.3 billion, up 11 percent from the year-ago period, while its International segment grew 14 percent to $40.9 billion, or 10 percent when adjusted for currency fluctuations. Amazon Web Services (AWS), the company’s most profitable arm, re-accelerated to a 20 percent growth rate with quarterly sales of $33 billion, the fastest expansion since 2022.

Overall operating income stood at $17.4 billion, unchanged from the third quarter of 2024, though the figure included two exceptional charges, $2.5 billion related to a legal settlement with the U.S. Federal Trade Commission and $1.8 billion in severance costs linked to planned job cuts.

Excluding these one-time items, Amazon’s operating income would have been $21.7 billion. By segment, North America reported operating income of $4.8 billion, or $7.3 billion excluding the FTC settlement; International contributed $1.2 billion; and AWS earned $11.4 billion, compared with $10.4 billion a year earlier.

Net income for the quarter surged to $21.2 billion, translating into $1.95 per diluted share, up from $15.3 billion, or $1.43 per share, in the same period last year. The figure was boosted by a $9.5 billion pre-tax gain from Amazon’s investment in Anthropic PBC, included in non-operating income. Operating cash flow for the trailing twelve months climbed 16 percent to $130.7 billion, while free cash flow fell sharply to $14.8 billion from $47.7 billion a year earlier, reflecting a $50.9 billion year-on-year increase in spending on property and equipment.

Chief executive Andy Jassy credited artificial intelligence for “driving meaningful improvements in every corner of our business.” He said AWS was “growing at a pace we haven’t seen since 2022,” powered by surging AI and infrastructure demand. “We’ve added more than 3.8 gigawatts of capacity in the past 12 months,” Jassy said, adding that Amazon remains on track to deliver to Prime members at record speeds, expand same-day grocery delivery to over 2,300 communities by year-end, and double rural delivery coverage.

AI innovation dominated Amazon’s quarterly highlights. The company said its custom Trainium2 AI chip business grew 150 percent quarter-on-quarter and announced Project Rainier, a massive compute cluster housing nearly half a million Trainium2 chips designed to train Anthropic’s Claude models. It also introduced new EC2 servers built on NVIDIA Grace Blackwell Superchips and added multiple foundation models to Amazon Bedrock, including versions from OpenAI, DeepSeek, Qwen and Anthropic. Developer engagement with Kiro, Amazon’s agentic coding environment, surpassed 100,000 users in preview, while its enterprise-facing Quick Suite AI app,billed as an “AI teammate”,has reportedly cut project timelines by over 80 percent.

In parallel, AWS continued its global expansion with a new region in New Zealand and plans for ten additional availability zones and three more regions. The cloud division signed new enterprise agreements with companies including Delta Air Lines, Volkswagen Group, Fox Corporation, ServiceNow, Qantas, SAP, BT Group, and Perplexity AI. Amazon also announced that its Connect contact-centre solution has become a billion-dollar business, handling more than 12 billion AI-assisted customer interaction minutes over the past year.

On the consumer side, Amazon said its AI shopping assistant Rufus has been used by 250 million customers this year, with shoppers using the tool being 60 percent more likely to complete purchases. Its new “Help Me Decide” recommendation feature and generative-AI tools for sellers are also seeing rapid adoption, with more than 1.3 million independent sellers using AI to create product listings. The company expanded multi-channel fulfilment for sellers across Walmart, Shopify and SHEIN, and broadened ad partnerships to include Netflix, Spotify and SiriusXM Media.

Prime Video continued to post strong engagement, drawing over 70 million global viewers for The Summer I Turned Pretty Season 3, which saw viewership climb 65 percent over the previous season. Thursday Night Football on Prime averaged 15.3 million viewers, marking the best TNF viewership on any network in a decade, while the debut of NBA on Prime reached an average audience of 1.25 million U.S. viewers during its season-opening double-header.

Amazon also rolled out the reimagined Luna cloud-gaming platform, expanded its Alexa+ ecosystem across new Fire TV and Ring devices, and revealed progress in satellite connectivity through Project Kuiper, which now operates a fleet of over 150 satellites. Its autonomous-mobility arm Zoox began offering robotaxi rides in Las Vegas and announced Washington D.C. as its eighth testing location.

The company closed the quarter with a series of workforce and community initiatives, including a $1 billion investment in employee pay and benefits that lifted average hourly wages to over $30 in the U.S., a $2.5 billion Future Ready 2030programme to expand education access to 50 million people, and plans to hire hundreds of thousands of seasonal workers worldwide.

Looking ahead, Amazon expects fourth-quarter 2025 net sales to range between $206 billion and $213 billion, representing 10 to 13 percent growth year-on-year, assuming a 190-basis-point tailwind from foreign exchange. The company forecast operating income between $21 billion and $26 billion, compared with $21.2 billion in the same quarter last year.

Amazon’s Q3 performance highlights the company’s deepening bet on AI as a growth engine for both its cloud and retail ecosystems. Despite a sharp increase in capital expenditure and the impact of one-time charges, its topline momentum and strong profitability signal that Amazon’s strategy of fusing generative AI, cloud computing and logistics scale is paying off heading into the critical holiday season.