Amazon reports Q3 revenue of $180.2B and EPS of $1.95, beating expectations

Amazon’s stock price jumped more than 13% in after-hours trading on Thursday after the company reported third-quarter results that beat every Wall Street ￰0￱ company posted $180.2 billion in revenue, up 13% year over year, and $1.95 earnings per share, crushing the $1.57 EPS analysts were expecting, and investors responded ￰1￱ Web Services, the company’s cloud business, brought in $33 billion during the ￰2￱ was ahead of the expected $32.42 billion, and up 20.2% from the same time last ￰3￱ has been a pressure point for Amazon in recent quarters, especially as rivals Microsoft and Google continue pulling in more AI-focused enterprise clients. Microsoft’s Azure division saw 40% ￰4￱ Cloud rose 34%.

Amazon CEO Andy Jassy said AWS is “growing at a pace we haven’t seen since 2022” and added that demand for artificial intelligence infrastructure is rising fast. “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity, adding more than 3.8 gigawatts in the past 12 months,” Andy said in a written statement. AWS’s performance helped push total revenue above forecasts, and the company’s advertising unit also topped ￰5￱ revenue came in at $17.7 billion, slightly above the $17.34 billion Wall Street ￰6￱ core online stores division also posted 10% growth during the quarter, showing consumers are still spending on Amazon even as Trump’s shifting trade policies loom over the retail ￰7￱ builds Project Rainier to run Anthropic models On Wednesday, Amazon opened a new $11 billion AI data center, called Project Rainier, designed to host and train models from the Claude chatbot developer ￰8￱ has already committed $8 billion to Anthropic, and said the startup will use 1 million custom Trainium2 chips by the end of ￰9￱ move comes as cloud players battle over AI deals, and Amazon’s Project Rainier is intended to silence concerns that the company is falling ￰10￱ also expanded its relationship with Google in a multi-billion-dollar cloud partnership last week.

Meanwhile, Meta signed major cloud contracts with Google and Oracle. Amazon’s AI efforts also include Q, a chatbot aimed at business users, and Bedrock, a generative AI platform for cloud ￰11￱ company said 250 million shoppers used its retail assistant Rufus this year, and 60% of them were more likely to make a purchase after using the ￰12￱ doubling down on AI, Amazon is cutting costs ￰13￱ Tuesday, the company confirmed it will lay off 14,000 corporate ￰14￱ move is aimed at making the company faster and less bureaucratic. “We’re reorganizing to respond faster, especially around AI,” a spokesperson ￰15￱ layoffs pushed severance costs to $1.8 billion for the ￰16￱ said the current employee count is 1.58 million, a 2% jump from last ￰17￱ posts flat income, settles with FTC over Prime Amazon reported $17.4 billion in operating income, which was flat compared to the same period last ￰18￱ the number includes two major items: a $2.5 billion settlement with the Federal Trade Commission over “deceptive” Prime subscription practices, and the $1.8 billion in severance tied to its latest round of ￰19￱ ahead, the company said it expects fourth-quarter revenue to land between $206 billion and $213 billion, with the midpoint, $209.5 billion, above the $208 billion analysts had penciled ￰20￱ operating income ranges between $21 billion and $26 billion, compared to the average Wall Street forecast of $23.8 ￰21￱ said tariffs could still affect Amazon’s ￰22￱ last quarter’s call, he noted that the tariff increases under President Donald Trump hadn’t hurt consumer demand or forced any price spikes… at least not ￰23￱ trade policies remain on Amazon’s ￰24￱ company also warned that guidance could change depending on how things evolve ￰25￱ company’s Q3 release came just over a week after an AWS outage that lasted more than 15 hours, knocking multiple websites ￰26￱ also experienced outages with its Azure and 365 platforms just before its earnings ￰27￱ those issues, all three companies remain locked in a race for AI dominance through cloud ￰28￱ is still the biggest cloud infrastructure provider in the world, but the race for generative AI dominance is forcing everyone to spend fast and scale ￰29￱ Rainier center, the Anthropic chip deal, and new AI services are Amazon’s current ￰30￱ Wall Street will be watching if those moves are enough to close the gap on its faster-growing competitors.

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