Topline
Amazon delivered results from 2025’s first three months Thursday afternoon—adding to a blockbuster week that included a short-lived standoff between the company and White House—as investors pay keen attention to how the e-commerce giant will comment on how President Trump’s tariffs will impact its business.
The White House took significant issue with Amazon’s rumored plans to highlight tariff-related price … More
Key Facts
Amazon brought in $155.7 billion in revenue and $1.59 earnings per share ($17.1 billion net income), beating consensus analyst estimates of $155.1 billion in revenue and $1.37 earnings per share ($14.6 billion net income), according to FactSet data.
But the Seattle-based firm said it expects the second quarter won’t live up to what Wall Street expected.
Amazon guided for $159 billion to $164 billion in Q2 sales ($161.5 billion midpoint) and between $13 billion and $17.5 billion in Q2 operating income ($15.3 billion midpoint), comparing unfavorably to estimates of $161.2 billion in sales and $17.6 billion operating profit for Amazon’s current quarter.
Shares of Amazon declined more than 4% in after-hours trading on the weaker-than-expected outlook for the current quarter.
Amazon’s artificial intelligence heavy AWS cloud segment booked annual sales growth of 17% to $29.3 billion, roughly in line with forecasts of $29.4 billion.
Amazon Says Tariffs Complicate Its Future
Amazon said “tariff and trade policy” changes were among the complicating factors in issuing guidance, a reference that was not in the previous quarter’s outlook. About half of Amazon’s third-party sellers are from China, according to Marketplace Pulse. Many major U.S. companies are warning investors in their earnings reports about the impact tariffs will have.
Amazon Stock Got Pre-Earnings Bump
Shares of Amazon climbed 3% on Thursday to $190, closing at their highest level in three weeks. The rally came as the Nasdaq spiked 1.5% following strong earnings reports from Facebook parent Meta and Microsoft.
What To Watch For
Amazon will hold its earnings call with investors at 5 p.m., livestreamed here. The “biggest focus” for the call will be how Amazon CEO Andy Jassy and management address tariffs, according to Bank of America analyst Justin Post.
Key Background
Amazon and Apple are among the U.S. companies with the heaviest exposure to China tariffs. Both of their stocks have underperformed many of their peers accordingly, as Amazon’s -14% year-to-date return and Apple’s -15% return is worse than the S&P 500’s -5%.
Trump Called Bezos Over Possibly Including Tariff Costs On Amazon
Amazon briefly became the target of the Trump administration’s ire Tuesday when White House Press Secretary Karoline Leavitt deemed the retailer’s reported plans to directly display tariff price increases to consumers a “hostile and political act.” Amazon spokesperson Tim Doyle told Forbes the company only mulled adding those tariff items to its low-price Haul site, but it was “never approved and not going to happen.” Trump called Amazon chairman Jeff Bezos to voice his displeasure with highlighting any tariff price increases. Bezos is a “good guy” and “solved the problem very quickly,” Trump told reporters Tuesday.
Forbes Valuation
Bezos is the second-wealthiest person in the world thanks mostly to his 9% stake in Amazon, according to Forbes’ estimates. His $208 billion net worth trails only the $387 billion fortune of Tesla CEO Elon Musk.
Correction (5/1): Amazon’s Q1 revenue and AWS year-over-year growth were updated.
