Amazon’s Q3 2025 Earnings Soar: AWS and AI Investments Drive Record Growth
In the third quarter of 2025, Amazon.com Inc. reported exceptional financial results, surpassing Wall Street expectations and highlighting the company’s strategic focus on cloud computing and artificial intelligence (AI). The e-commerce giant achieved a revenue of $180.2 billion, marking a 13% increase from the same period in the previous year. Net income rose to $21.12 billion, or $1.95 per share, up from $15.33 billion, or $1.43 per share, a year ago. ([apnews.com](https://apnews.com/article/61fe44159f18f9b89d9ed2a5642ba903?utm_source=openai))
AWS: The Powerhouse Behind Amazon’s Growth
Amazon Web Services (AWS), the company’s cloud computing division, played a pivotal role in this impressive performance. AWS revenue climbed 20% year-over-year to $33 billion, marking its fastest growth since 2022. This surge alleviated investor concerns about AWS potentially losing market share to competitors like Microsoft Azure and Google Cloud. CEO Andy Jassy noted that AWS is growing at a pace we haven’t seen since 2022, driven by strong demand for AI and core infrastructure services. ([reuters.com](https://www.reuters.com/business/retail-consumer/amazon-shares-soar-ai-boom-fuels-stellar-growth-aws-cloud-unit-2025-10-31/?utm_source=openai))
AI Investments Fueling Expansion
Amazon’s substantial investments in AI have been instrumental in driving growth across various segments. The company has integrated AI-driven improvements in fulfillment, leading to faster delivery times and expanded grocery services. Amazon aims to double rural same-day and next-day delivery coverage and reach 2,300 communities with perishable grocery delivery by year-end. ([apnews.com](https://apnews.com/article/61fe44159f18f9b89d9ed2a5642ba903?utm_source=openai))
In the cloud sector, Amazon has invested approximately $100 billion this year into data-center build-outs and chip capacity, adding 3.8 gigawatts of power. The company’s custom Trainium2 chips are fully subscribed, and its Project Rainier cluster, built for AI research company Anthropic, is under construction. ([indexbox.io](https://www.indexbox.io/blog/amazon-q3-2025-earnings-1802b-revenue-20-aws-growth/?utm_source=openai))
Retail and Advertising Segments Show Robust Performance
Beyond AWS, Amazon’s retail and advertising businesses also delivered strong performances. Retail revenue rose 11% year-over-year, outpacing most large U.S. peers. Advertising sales jumped 24% to $17.7 billion, supported by AI-driven targeting and automation. The company has been expanding ad placements across Echo devices, grocery carts, and … . ([reuters.com](https://www.reuters.com/business/retail-consumer/amazon-shares-soar-ai-boom-fuels-stellar-growth-aws-cloud-unit-2025-10-31/?utm_source=openai))
Strategic Cost Management and Workforce Adjustments
To manage costs and streamline operations, Amazon is cutting about 14,000 corporate jobs, representing 4% of its corporate workforce. This move is part of a broader efficiency drive aimed at reducing bureaucracy and improving agility. Despite these reductions, Amazon continues to invest heavily in AI and automation, introducing advanced warehouse robotics and AI tools to enhance worker deployment. ([apnews.com](https://apnews.com/article/61fe44159f18f9b89d9ed2a5642ba903?utm_source=openai))
Market Reaction and Future Outlook
Following the earnings announcement, Amazon shares surged nearly 12% in pre … trading, reflecting renewed investor confidence in the company’s competitive edge in the AI and cloud sectors. For the fourth quarter, Amazon projected revenue between $206 billion and $213 billion, with operating income ranging from $21 billion to $26 billion, both above analyst expectations. ([reuters.com](https://www.reuters.com/business/retail-consumer/amazon-shares-soar-ai-boom-fuels-stellar-growth-aws-cloud-unit-2025-10-31/?utm_source=openai))
In summary, Amazon’s Q3 2025 results underscore the company’s successful strategic investments in AI and cloud infrastructure, positioning it for sustained growth in the rapidly evolving digital landscape.
