Amazon (AMZN) Q2 Revenue Jumps 13%
GAAP earnings per share of $1.68 beat the $1.33 analyst estimate in Q2 2025, with revenue (GAAP) also exceeded expectations at $167.7 billion in Q2 2025.
Amazon Web Services revenue (GAAP) increased 17.5% year-over-year, and advertising sales rose 23% year-over-year.
Trailing twelve month free cash flow declined 66%, from $53.0 billion in the period ended Q2 2024 to $18.2 billion in the period ended Q2 2025 despite robust profit growth.
These 10 stocks could mint the next wave of millionaires ›
Amazon (NASDAQ:AMZN), the e-commerce and technology giant, released its second quarter 2025 earnings on July 31, 2025. The company reported both revenue and earnings (GAAP) well ahead of analyst forecasts in Q2 2025, with net sales (GAAP) of $167.7 billion and earnings per share (GAAP) of $1.68. Analysts had expected $162.2 billion in GAAP revenue and $1.33 in GAAP earnings per share. Strong performance in cloud computing (AWS), international operations, and advertising drove the results, although a sharp drop in free cash flow for the period ended Q2 2025 and heavier capital investments raised new investor questions. Overall, the quarter was highlighted by operational outperformance.
Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change
EPS (GAAP) $1.68 $1.33 $1.26 33.3 %
Revenue (GAAP) $167.7 billion $162.2 billion $148.0 billion 13.3 %
Net Income (GAAP) $18.2 billion $13.5 billion 34.6 %
Operating Income (GAAP) $19.2 billion $14.7 billion 30.6 %
Free Cash Flow (Trailing 12 Months) $18.2 billion $53.0 billion (65.7 %)
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Amazon's Business Overview and Recent Priorities
Amazon operates as a broad-based digital retailer, cloud infrastructure provider, advertising platform, and innovator in everything from logistics to satellite communications. Its core businesses span e-commerce sales, cloud services via Amazon Web Services (AWS), and a range of supporting segments like advertising, subscriptions, and physical retail.
Recent priorities include enhancing the customer experience with faster shipping and broader selection, accelerating artificial intelligence development, expanding its cloud service reach, and investing in its logistics and fulfillment network. The company's technology and capital investments are designed to support both near-term growth and long-term innovation.
Quarter in Detail: What Drove Amazon's Results?
AWS saw sales jump 17.5% to $30.87 billion. Advertising services revenue reached $15.69 billion, a 22% increase, reflecting continued growth in digital ad sales to brands seeking online reach.
North America sales totaled $100.1 billion, up 11% year-over-year for the North America segment (GAAP). International segment sales climbed 16% to $36.8 billion, and its operating income (GAAP) rose sharply to $1.49 billion from $273 million in Q2 2024. Improved margins in both regions are notable (GAAP), with International segment operating margin (GAAP) improved from 0.9% in Q2 2024 to 4.1%. In AWS, operating margin slipped sequentially from 39.5% in Q1 2025 to 32.9%.
These outlays have supported expansion in cloud, fulfillment, logistics, and emerging businesses.
Operational milestones included the largest Prime Day event ever, with record sales for independent sellers, and a continued build-out of same- and next-day delivery capacity in the United States. The customer experience saw expansion with the Alexa+ AI-powered assistant, and AWS won new large clients spanning industries including automotive, finance, and consumer goods. Major launches in AI — like Bedrock foundation models and Kiro, an AI-powered software development environment — were front and center. Meanwhile, Project Kuiper's successful satellite launches set the stage for space-based internet services.
No material changes in dividend policy occurred, as Amazon does not currently pay a dividend.
Looking Forward: Amazon's Guidance and Watch Points
Amazon projected net sales of $174.0 billion to $179.5 billion, a year-over-year growth rate of 10% to 13%. Expected operating income (GAAP) is $15.5 billion to $20.5 billion, compared to $17.4 billion in Q3 2024. The company noted an anticipated currency tailwind of 130 basis points. Management flagged ongoing risks in currency movements, geopolitical developments, and substantial capital expenditure requirements as important considerations for the coming months.
Investors should watch for further shifts in free cash flow, given the dramatic year-over-year decline in free cash flow (GAAP, trailing twelve months: $18.2 billion in Q2 2025 vs. $53.0 billion in Q2 2024) and the ongoing elevated pace of capital investment. AWS margin trends bear watching, especially given recent sequential declines in operating margin from 39.5% in Q1 2025 to 32.9% in Q2 2025. Persistent uncertainty about global tariffs and trade, as well as intensified competition in cloud from Microsoft (NASDAQ:MSFT) and Google parent Alphabet (NASDAQ:GOOGL), remain themes in management commentary. Amazon does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,036%* — a market-crushing outperformance compared to 181% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of July 29, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
28 minutes ago
- Globe and Mail
Millrose Properties, Inc. Announces Pricing of Upsized $1.25 Billion Senior Notes Offering
Millrose Properties, Inc. (NYSE: MRP) ('Millrose' or the 'Company') announced today the pricing of its private offering (the 'Offering') of $1.25 billion aggregate principal amount of its 6.375% Senior Notes due 2030 (the 'Notes'), representing a $250 million upsize from the previously announced offering size, at an initial offering price of 100.000% of the principal amount plus accrued interest, if any, from August 7, 2025. The Offering is expected to close on August 7, 2025, subject to customary closing conditions. Millrose intends to use the net proceeds of the Offering (i) to repay $500 million principal amount outstanding under the Company's term loan credit agreement, dated June 24, 2025 and maturing June 23, 2026, (ii) to repay $450 million principal amount of outstanding borrowings under the Company's revolving credit agreement dated February 7, 2025, and (iii) for general corporate purposes. The Notes and the related guarantee will be offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, (the 'Securities Act') and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The Notes and the related guarantee have not been and will not be registered under the Securities Act or the securities laws of any state or other jurisdiction, and the Notes may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy any securities, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135c under the Securities Act. About Millrose Properties, Inc. Millrose purchases and develops residential land and sells finished homesites to home builders by way of option contracts with predetermined costs and takedown schedules. Millrose serves as a solution for home builders seeking to expand access to finished homesites while implementing an asset-light strategy. As fully developed homesites are sold by Millrose, capital is recycled into future land acquisitions for home builders, providing customers with durable access to community growth. Forward-looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about the Offering, the expected use of proceeds therefrom and other future events. All forward-looking statements included in this release are qualified in their entirety by, and should be read in the context of, the risk factors and other factors disclosed in the Company's filings with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at Except to the extent required by applicable law, Millrose undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.
Globe and Mail
28 minutes ago
- Globe and Mail
Why Apple Stock Lagged the Market on Monday
Key Points A global bank maintained its equivalent of a sell recommendation in a new research note. It enumerated three reasons not to buy the stock. 10 stocks we like better than Apple › An Apple (NASDAQ: AAPL) bear weighed in on the monster tech stock Monday morning, and it seems at least a few investors were taking its latest analysis to heart. They unenthusiastically traded the company's stock that session, weakly pushing it only 0.5% higher. Meanwhile, the benchmark S&P 500 index closed the day 1.5% in positive territory. Barclays is quite the bear In its new Apple take, Barclays reiterated its existing underweight (read: sell) recommendation on the iDevice maker. This, despite enacting a slight raise in its price target to $180 per share from the preceding $173. According to reports, Barclays' continued pessimistic outlook on Apple stems from three key factors. The first is the inherent weakness in the company's foundational hardware business. Growth in such products has been modest, and the bank's analysts pointed out that the seemingly robust growth in the company's just-reported fiscal third quarter was due to factors such as forward purchasing ahead of anticipated tariffs. The second is China, a crucial market for Apple. Barclays believes that intensifying competition will threaten the company's market share in the sprawling Asian nation. Concerned about regulators Finally, the bank is wary about potential regulatory difficulties Apple might have in its Apple Services segment. With increased scrutiny and regulatory action around app marketplaces like the App Store, the company could be hit with rulings that reduce its take from this lucrative revenue stream. Last week, Alphabet 's Google suffered a notable legal defeat when its appeal against an unfavorable ruling in a case centered around its Google Play was rejected. Both regulators and courts seem to find the highly advantageous conditions of marketplaces like Google Play and the App Store distasteful. Should you invest $1,000 in Apple right now? Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
Globe and Mail
28 minutes ago
- Globe and Mail
Analysts Offer Insights on Financial Companies: Robinhood (HOOD) and Coinbase Global (COIN)
Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Robinhood (HOOD – Research Report) and Coinbase Global (COIN – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Robinhood (HOOD) In a report issued on August 1, Craig Siegenthaler from Bank of America Securities maintained a Buy rating on Robinhood, with a price target of $119.00. The company's shares closed last Friday at $99.90. According to Siegenthaler is a top 100 analyst with an average return of 18.8% and a 64.0% success rate. Siegenthaler covers the Financial sector, focusing on stocks such as Intercontinental Exchange, Apollo Global Management, and Victory Capital Holdings. ;'> Robinhood has an analyst consensus of Moderate Buy, with a price target consensus of $108.06, which is a 10.5% upside from current levels. In a report issued on July 17, TR | OpenAI – 4o also upgraded the stock to Buy with a $118.00 price target. Coinbase Global (COIN) Coinbase Global received a Sell rating and a $248.00 price target from Compass Point analyst Ed Engel today. The company's shares closed last Friday at $314.69. Engel has an average return of 0.8% when recommending Coinbase Global. ;'> According to Engel is ranked #8697 out of 9897 analysts. Currently, the analyst consensus on Coinbase Global is a Moderate Buy with an average price target of $387.97, implying a 15.8% upside from current levels. In a report issued on August 1, H.C. Wainwright also reiterated a Sell rating on the stock with a $300.00 price target.
