Amazon's Q2 Earnings Exceed Forecasts

Amazon.com Inc. has announced its second-quarter earnings, revealing a significant 13% year-on-year increase in net sales, reaching an impressive $167.7 billion. This performance not only surpassed expectations but also highlighted the company's robust growth trajectory.

Financial Highlights

The company reported a net income of $18.2 billion, marking a 35% increase from the previous year. Diluted earnings per share (EPS) stood at $1.68, up by 59%. Operating income saw a substantial rise of 31%, totaling $19.2 billion, with Amazon Web Services (AWS) contributing $10.2 billion, a 9% increase.

Looking Ahead

Amazon's guidance for the third quarter of 2025 projects net sales between $174 billion and $179.5 billion, with operating income expected to range from $15.5 billion to $20.5 billion. CEO Andy Jassy expressed optimism about the company's AI advancements, emphasizing their role in enhancing customer experiences and driving growth.

Market Reaction: Despite the strong results, Amazon's shares experienced a 2.40% dip in after-hours trading, attributed to investor concerns over the future guidance.