Amazon Unveils Fourth Quarter Financial Results
Amazon.com, Inc. has revealed its fourth quarter financial results for the year ending December 31, 2025, highlighting impressive growth across various sectors.
Fourth Quarter Financial Overview
In the fourth quarter of 2025, Amazon reported net sales of $213.4 billion, marking a 14% increase from $187.8 billion in the same period of 2024. Adjusting for foreign exchange impacts, the net sales growth stands at 12% year-over-year.
Segment Performance
- North America: Sales rose to $127.1 billion, a 10% increase.
- International: Sales increased to $50.7 billion, up by 17%. Excluding currency changes, growth was 11%.
- AWS: Sales climbed 24% to $35.6 billion, demonstrating rapid growth.
Operating Income and Net Income
Operating income for the fourth quarter reached $25.0 billion, compared to $21.2 billion in 2024, though it included special charges totaling $2.4 billion for tax disputes, severance costs, and asset impairments. Excluding these charges, operating income would have been $27.4 billion.
Net income for the quarter was reported at $21.2 billion, or $1.95 per diluted share, up from $20.0 billion or $1.86 per diluted share a year prior.
Year-End Financial Highlights
For the full year 2025, Amazon’s net sales amounted to $716.9 billion, reflecting a 12% increase over $638.0 billion in 2024. Without foreign exchange adjustments, the sales growth remained at 12%.
Annual Breakdown by Segment
- North America: $426.3 billion, 10% year-over-year growth.
- International: $161.9 billion, a 13% increase year-over-year, 10% excluding currency impacts.
- AWS: $128.7 billion, up 20% from the previous year.
Operational Cash Flow and Investments
Amazon’s operating cash flow increased by 20% to $139.5 billion for the trailing twelve months, an improvement from $115.9 billion the year before. However, free cash flow decreased to $11.2 billion, primarily due to a $50.7 billion surge in property and equipment purchases linked to investments in artificial intelligence.
Future Outlook & Investments
Andy Jassy, CEO of Amazon, indicated strong growth prospects ahead. The company anticipates investing around $200 billion in capital expenditures throughout 2026. Future expansions focus on artificial intelligence, chips, robotics, and low earth orbit satellites.
Recent Highlights and Innovations
Amazon continues to make strides in innovation and customer service. Key achievements include:
- New partnerships with OpenAI and other major organizations to enhance AWS services.
- Advancements in AWS custom chips, with a combined annual revenue for Trainium and Graviton exceeding $10 billion.
- The launch of AI-driven solutions like Rufus, which improved sales performance by facilitating online shopping.
Q1 2026 Forecast
Looking ahead to the first quarter of 2026, Amazon predicts net sales between $173.5 billion and $178.5 billion, expecting growth between 11% and 15% compared to the first quarter of 2025. Operating income is projected between $16.5 billion and $21.5 billion, considering ongoing investments and operational costs.
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